Energy Focus: EMEA

THE BUSINESS MAGAZINE FOR ENERGY LEADERS

EMEA

ENERGYFOCUS

www.emea-energy.net

December 2019

EQUINOR

Third Largest NCS Field Starts Up ALSO IN THIS ISSUE:

A&P Falmouth / DeRegt Cables / GeoSea / Borouge

EDITOR’S LETTER EDITOR Joe Forshaw  joe@emea-energy.net SENIOR PROJECT MANAGER Sam Hendricks  sam@emea-energy.net SENIOR PROJECT MANAGER Tommy Atkinson  tommy@ emea-energy.net SENIOR PROJECT MANAGER Lewis Hammond  lewis@emea-energy.net PROJECT MANAGER James Davey  jamesd@emea-energy.net PROJECT MANAGER Chris Wright  chrisw@emea-energy.net

Cover Photo - © Equinor - Johan Sverdrup complete field centre - Photographer: Espen Rønnevik/Øyvind Gravås

PROJECT MANAGER Daniel Roper  daniel@emea-energy.net PROJECT MANAGER Tom Gibbons  Thomas@emea-energy.net FINANCE MANAGER Chloe Manning  Chloe@emea-energy.net SENIOR DESIGNER Liam Woodbine  liam@emea-energy.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB +44 (0) 1603 855 161

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Now, at the end of 2019, we are reminded yet again of the undeniable and important role that traditional fossil fuel still plays in the global energy mix. Zero carbon emissions from energy production still remains a fantasy, but progress is certainly being made.

In the southern Norwegian North Sea, the infamous Johan Sverdrup project has achieved the start-up of production and first oil and operator Equinor is keen to highlight that sourcing oil here is more efficient than ever before, paving the way for existing and new fields to become friendlier.

As the third largest discovery on the Norwegian Continental Shelf, Johan Sverdrup will supply oil to global markets for the next 50 years, feeding money through a long value chain, creating employment, wealth and tax revenue for millions of people.

Meanwhile, Equinor is also heavily invested in renewable energy and continues to pioneer construction and operation methods in wind and tidal generation – reflecting its new identity as a broad-based energy supplier. We take a deeper look at progress that has been made on the important Johan Sverdrup field.

In South Africa, using coal for power generation is still widespread. The country is finalising two of the world’s largest coal-fired power plants, and Sasol, one of the largest businesses in the country is pushing on with investments in the USA to complete its new chemical plant.

We look further at national infrastructure giant, Transnet, and how its port and rail network moves coal around the country; and Sasol, and how it still relies on coal to drive business.

Burning fossil fuels will not stop anytime soon. Those companies that have a widespread portfolio and exposure to new generating methods are those that will go on to command market share in the industry. 2020 will be a defining year for all, and those that can adapt are those that will thrive.

E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2019

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 1603 855 161  joe@emea-energy.net www.emea-energy.net

www.emea-energy.net / 3

06/NEWS: The News Snapshot A round up of some of the latest news stories in the industry.

72/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the industry.

9/EQUINOR Third Largest NCS Field Starts Up For Equinor, operator of the Johan Sverdrup field in the North Sea, start of production and first oil are significant milestones in a major 50-year project. The oil and gas from this field will contribute to jobs and prosperity for the company, its partners, and for Norway, for at least the next half-century.

Š Equinor

4 / www.emea-energy.net

CONTENTS

9// 18// 25// 31// 37// 42// 48// 55// 60// 67//

9/EQUINOR Third Largest NCS Field Starts Up 18/A&P FALMOUTH Ship Repair Expertise Vital to Energy Future 25/DEREGT CABLES Helping You Dive Deeper and Climb Higher 31/GEOSEA On the Crest of a Renewable Wave 37/BOROUGE Plastics Made with Innovation, Value and Sustainability in Mind 42/ANGLO AMERICAN PLATINUM Strong, Shining &Responsible 48/TANESCO Bringing Light and Growth Across Tanzania 55/SASOL Sasol Enters Post-LCCP Build Era With New CEO 60/TRANSNET Rail & Port Investments to Drive SA Economic Growth 67/ENI World Leaders in Sustainable Energy Provision www.emea-energy.net / 5

JAN DE NUL ORDERS SECOND NEXT GENERATION OFFSHORE INSTALLATION VESSEL LES ALIZÉS Just six months after the investment announcement for the offshore installation vessel Voltaire, Jan De Nul Group orders Les Alizés, a floating installation crane vessel from the CMHI Haimen shipyard in China.

Together with the Voltaire, this new vessel will be in a super-size class of its own, capable of building the newest generation of offshore wind farms. Les Alizés, that will be ready in 2022, is equipped with a crane having a lifting capacity of 5,000 tons and equally impressive lifting heights.

Les Alizés will mainly be used for the construction of offshore wind farms, but with her impressive crane she is also extremely suitable for decommissioning offshore oil and gas platforms.

Thanks to her dimensions and impressive lifting and loading capacities, Les Alizés will be able to load out, transport and install multiple units of the largest and heaviest wind turbine foundations. In addition, as a crane vessel that floats, it will be able to install heavier and larger foundations into deeper waters and in more challenging seabed conditions.

This vessel investment is a response to the global trend within the offshore wind energy sector to design and install increasingly larger wind turbines. This new generation of turbine can be more than 270 metres high, with blades up to

120 metres long and sit on foundations up to 2,500 tonnes.

The current offshore installation vessels are experiencing great difficulties in installing these new turbines.

Philippe Hutse, Offshore Director at Jan De Nul Group, explains: “We continue to invest in the future of offshore renewable energy. By ordering Les Alizés today, from 2022 we will have not one, but two, offshore installation vessels that will be able to install the newest generation of offshore wind farms.”

GAZPROM COMMENCES PIPELINE SUPPLIES OF RUSSIAN GAS TO CHINA A ceremonial event marking the start of first-ever pipeline supplies of Russian gas to China via the eastern route – the Power of Siberia gas trunkline – took place recently.

The scheme of gas supplies via the eastern route is the most ambitious investment project in the global gas industry. Within this framework, Gazprom has built a section of the Power of Siberia gas pipeline stretching for some 2,200 kilometers from Yakutia to the Chinese border near Blagoveshchensk. Also completed are the border-adjacent Atamanskaya compressor station and a cross-border section with a two-string submerged crossing under the Amur River.

The project is implemented with utmost efficiency in the given extreme climatic conditions such as, for example, the minimum air temperatures in Yakutia which can be as low as −62 degrees Celsius. Power of Siberia passes through wetlands, mountainous terrains,

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seismically active zones, and areas of permafrost and rocky ground.

In the project, the Company is applying cuttingedge technologies along with domestic hi-tech equipment meeting the best world standards. For instance, the Power of Siberia gas pipeline is built using solely pipes of Russian manufacture with antifriction coating inside, as this technology helps reduce gas transmission costs. On the outside, the pipes are insulated with innovative Russian nanocomposite materials providing anticorrosion protection which guarantees a long service life for the gas pipeline.

For crossing active tectonic faults, pipes of enhanced deformation capacity are used, with special technical solutions applied when laying them. Russian factories mastered the production of these pipes especially for Power of Siberia.

NEWS SNAPSHOT BP INVESTS IN CITY MOBILITY START-UP MAAS GLOBAL BP Ventures is investing €10 million in MaaS Global, a provider of digital mobility software designed to make transport easier and smarter. The company’s innovative Whim app allows customers to access and connect on a single platform all available transport options in a city – from taxis, buses, bikes and rental cars, to ride-hailing services, shared e-scooters and e-bikes.

The investment in the Finnish-based start-up supports BP’s strategy of developing and providing mobility and

transportation options in an increasingly smarter, digital world.

The ‘Mobility-as-a-Service’ (or MaaS) industry is forecast to grow significantly in revenue by 2030, as the market shifts towards a model of on-demand access to both public and private transport networks.

Sampo Hietanen, CEO and founder, MaaS Global said: “The world of transportation is going through disruption that is technology-enabled but, fundamentally, demand-driven.

To us, having BP on board as a strategic investor is a real asset. BP’s

global reach, its long experience in serving customers and technical expertise will be invaluable as we continue to build the ecosystem required to offer a seamless mobility platform to our users.”

After launching Whim in Helsinki, MaaS Global has made the service available in Birmingham, UK, Vienna, Austria, and Antwerp, Belgium. BP’s investment will support expansion plans to roll out the app in additional cities across the globe, with immediate plans including Singapore and in the US.

AVK AND ROLLS-ROYCE ENTER INTO AN EXCLUSIVE PARTNERSHIP IN THE UK & IRELAND FOR THE SUPPLY OF DIESEL STANDBY GENSETS With immediate effect, AVK, the largest supplier of critical power solutions for data centres and the financial sector in the UK, will now enter into an exclusive partnership with Rolls-Royce MTU brand for standby gensets in UK and Ireland.

The exclusivity agreement was signed

by AVK’s UK Managing Director Chris Pritchard, MTU’s UK Managing Director Bruce Phillips and Vice President Power Generation at the Rolls-Royce Power Systems business unit, Andreas Goertz, recently in London.

The agreement covers the supply of MTU Series 2000 and 4000 diesel systems in a range extending from 825 to 4,000 KVA. AVK provides turnkey standby power systems and UPS systems, in addition to taking care of their installation and maintenance.

As Chris Pritchard explains: “With many of the world’s major companies recognising MTU as the benchmark for

diesel generators, AVK has been using MTU products and solutions for over 20 years for its standby power systems.

We firmly believe that the combination of MTU’s reputation for class-leading performance coupled with AVK’s specialist knowledge and extensive experience will provide the perfect platform for growth in the critical power market. Together we remain focused and committed to providing

outstanding customer service to our customers across the U.K. and Ireland.”

In the past 30 years, AVK has developed into the largest solutions provider in the UK’s critical power market and has to date supplied gensets equipped with MTU engines with a total of more than 3.5 GW of power for data centres and for the financial, telecommunications and health sectors in the UK.

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© Equinor ASA - Johan Sverdrup

EQUINOR

Third Largest NCS Field Starts Up PRODUCTION: Joe Forshaw

For Equinor, operator of the Johan Sverdrup field in the North Sea, start of production and first oil are significant milestones in a major 50-year project.

The oil and gas from this field will contribute to jobs and prosperity for the company, its partners, and for Norway, for at least the next half-century. www.emea-energy.net / 9

INDUSTRY FOCUS: OIL & GAS

//

7 January 2020 will be a momentous day for all at Equinor and all involved in the Johan Sverdrup mega project.

His Majesty King Harald V will officially open the Johan Sverdrup field centre in the North Sea. Delegates, including Norway’s Prime Minister Erna Solberg and the Minister of Petroleum and Energy Kjell-Børge Freiberg, will join field centre personnel from Equinor and partner organisations Lundin Norway, Petoro, Aker BP and Total for lunch and a guided tour.

Equinor is one of the world’s energy majors, based in Norway, developing projects globally, with 20,000 employees, and involved in oil, gas, wind and solar energy. “We’re shaping the future of energy,” is the company’s boast.

Previously known as Statoil, the company changed its name to Equinor in May 2018 to better reflect its operations as its leads the way in a global shift towards new energy systems, relying less on oil and gas.

Equinor is derived from ‘equi’, the Latin root of words like equality and

Credit - Arne Reidar Mortensen © Equinor

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equilibrium, and ‘nor’, which salutes the company’s proud Norwegian origins.

“We’re becoming a broad energy company and need a name that’s relevant for our entire business, not just oil, especially if you bear in mind the future, with new energy forms and greater demands on carbon efficiency in production. That’s why it’s important for me as CEO to make sure we are as well equipped for the future as possible,” said CEO Eldar Sætre, discussing the new identity last year.

THIRD LARGEST At a time of transition, away from only oil and gas towards a broad energy portfolio, Equinor is clear that oil remains a vital element in the company’s strategy. “Equinor will continue to invest in oil and gas—while transforming into a broad energy company,” said Sætre.

Nowhere has this been clearer than at the Johan Sverdrup oil field in the Norwegian southern North Sea. Around 90 miles off the coast of Stavanger, Johan Sverdrup was discovered in 2010 and is one of the

// AT PEAK, THIS FIELD WILL ACCOUNT FOR AROUND ONE THIRD OF ALL OIL PRODUCTION IN NORWAY AND DELIVER VERY VALUABLE BARRELS WITH RECORD LOW EMISSIONS // most exciting finds of modern times.

Expected to hold up to 2.7 billion barrels of recoverable oil, at depths of 1900, the value attached the field is vast. Equinor estimates that, over the field’s 50-year lifespan, income could read NOK 1430 billion (depending on oil price). There will also be significant spin off for Norwegian tax revenues and employment opportunities.

Continues on page 14

EQUINOR

Maximize Oil and Gas Production with a Digital Twin Strategy Author: Eddy Lek, AVEVA, Global Industry Marketing Manager Rising trade and geopolitical tensions are heightening volatility in the oil market with crude prices swinging widely in the past months. Given the increased volatility and expectation of a lower crude price environment, oil and gas companies are accelerating their Digital Transformation initiatives to drive effective capacity, not only through CAPEX, but also OPEX investments by optimising operations and improving asset availability as these are more scalable and have a shorter lead time, enabling companies to swiftly respond to market changes. Digital initiatives, if well executed, can unleash enormous opportunities in value creation.

Leveraging Digital Twin Strategy in Digital Transformation A digital twin is a complete 360-degree replica of a physical asset such as pipelines, gathering systems, heat exchangers, turbines, pumps, compressors or entire plants that enables modelling of process and control, and monitoring of equipment health. It is the foundation of a digital transformation that optimises production, detects equipment problems before failures occur, uncovers new opportunities for process improvement, all while reducing unplanned downtime. Tagging operating assets with low quality and noisy data at the start of the process is likely to generate inferior or inaccurate results at downstream, reducing the value that can be extracted from the data. Therefore, ensuring a robust information management infrastructure to store, manage and contextualize data is first steps towards building a Digital Twin.

Building a Digital Twin To build a digital twin for an asset, an initial 3D model is created. This model is then tagged with all the necessary attributes and engineering documentation – such as geometry, layout, connectivity of key components and process data, and other business and safety-critical engineering and design information. Through AVEVA NET - a robust information gateway, information and data around the asset are extracted from disparate data sources and validated for accuracy against known standards to create viewable renditions of documents and drawings. This acts as a data validation layer to ensure that all data meet the correct standards throughout the asset lifecycle.

With the unified data-centric models, engineers are empowered with the ability to visualise the downstream impacts of their actions when they make either design or operational changes during operations. As a result, it eliminates information silos and reduces the decision cycles through improved collaboration and change management process.

A good illustration is the data-centric engineering and design platform deployed by Aibel that facilitates collaboration across multiple offices, enabling them to work closely with Equinor during project execution and deliver the Johan Sverdrup offshore platform on time and under budget.

Taking Operational Efficiency to the next level As the operational life continues, the digital twin is updated automatically, in real time, with current data, work records, and engineering information, to optimise maintenance and operational activities. With this, engineers and operators can easily search the asset tags to access critical up-to-date engineering and work information, and diagnose the health of a particular asset. Previously, such tasks would take considerable time and effort, and would often lead to issues being missed, leading to failures or production outages. With the digital twin, operational and asset issues are flagged and addressed early-on, and the workflow becomes preventative, instead of reactive.

Combining Analytics and Artificial Intelligence The real-time process data from the digital replica, in turn, can be fed into predictive analytics and artificial intelligence with the ultimate goals of optimising overall production, process conditions and even predicting failures ahead of time. The Digital Twin, when combined with powerful analytics and artificial intelligence, enables predictive maintenance and optimal operations.

With advanced pattern recognition, statistical models and machine learning technology, relevant data is then transformed into useful contexts with decision support, empowering workers to make technical decisions on-the-fly to reduce unplanned downtime and to optimise operating conditions.

Embarking on a journey with sustainable long-term results Digital transformation allows companies to create new capabilities, new business models, and innovate ahead of their competition. It is a journey through deployment of technology and driving behavioural change in workforce. Making the transition successfully can be profoundly rewarding for companies. The breadth and depth of products and services in AVEVA’s portfolio offers greater choices and flexibility in designing a path to maximise oil and gas production in a methodical and extensible manner.

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On time.

Under budget.

More efficient.

Equinor’s $1.2 billion, 22,500-ton Johan Sverdrup drilling platform was created in less time and with lower costs than expected, thanks to AVEVA. With 850 engineers across the world contributing 55,000 drawings, our powerful AVEVA E3D design software enabled a 20% reduction in engineering hours, driven by seamless digital collaboration.

By modeling the platform in 3D, our solution allowed asset owners and EPCs to manage projects by cross-refencing one single “digital twin” of the project, keeping costs down and improving safety.

To learn more, visit sw.aveva.com/success-stories/aibel

Photograph by Arne Reidar Mortensen, courtesy of Equinor ASA.

INDUSTRY FOCUS: OIL & GAS

Continued from page 10 Johan Sverdrup is the largest field development project on the Norwegian Continental Shelf since the 80s and has been built through a network of global partnerships, with international best practice being re-established at every milestone. When fully operational, after Phase 2 is complete in 2022, 660,000 barrels of oil will flow to the Mongstad terminal through Norway’s longest and largest pipeline.

Currently, Phase 1 is well under way and receiving much praise for its digitalisation, environmental impact, and efficiency. The field came on stream on 5 October 2019, a full two months ahead of schedule and NOK 40 billion below estimated cost.

ON STREAM Production plateau for Phase 1 is expected to be reached in the summer of 2020 and record low CO2

emissions are providing an example for others to follow.

“Johan Sverdrup coming on stream is a momentous occasion for Equinor, our partners and suppliers,” said Eldar Sætre. “At peak, this field will account for around one third of all oil production in Norway and deliver very valuable barrels with record low emissions. Johan Sverdrup is expected to generate income from production of more than NOK 1400 billion of which more than NOK 900 billion to the Norwegian state and society.”

Getting the project to where it is today has taken significant investment – NOK 83 billion. The plan for development and operation (PDO) was approved in 2015 and all parties have been working with ferocious appetite to make progress each day.

This has resulted in significant time and monetary savings.

“Starting production months ahead of schedule helps realise

Credit - Helge Hansen - Statoil - Mongstad refinery

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additional value from the field and is fitting for a project that over the development phase has redefined excellence in project execution,” says Anders Opedal, Executive Vice President for Technology, Projects & Drilling in Equinor.

“Close cooperation with our partners and suppliers has contributed to high quality in the execution phase, and has been a key part of the improvement story. And we’ve also made courageous decisions with new technology and digitalisation that we’re benefiting from today.”

Phase 1 has been the results of 70 million manhours, and more than 12,000 people from across the globe working in tandem during a two-year construction period.

“The qualification of new installations technology has reduced safety risk, saved more than two million offshore hours and shaved months of the development schedule.

EQUINOR

// IN THE SAME YEAR THAT NORWAY CELEBRATES 50 YEARS SINCE THE EKOFISK DISCOVERY IN 1969, WHICH STARTED THE OIL AND GAS ADVENTURE IN NORWAY, THE START-UP OF JOHAN SVERDRUP LAYS THE FOUNDATIONS FOR ANOTHER 50 YEARS OF INDUSTRIAL ACTIVITY AND VALUE-CREATION ON THE NCS //

We have also invested in digital solutions and ways of working to boost oil recovery, optimise production and improve field operations, and these new ways of working have already saved at least one month in the execution stage,” says Opedal.

Cooperation between many businesses, multiple Equinor divisions, governments, municipalities, and regulatory authorities cannot be underestimated. The result of this success has been the creation, and continuance, of mass employment at a time when the oil price was extremely unfavourable and the global trend was retrenchments.

“Johan Sverdrup is a giant development, built across nearly 30 construction sites in Norway and globally, and the field centre assembled in the North Sea counts as one of the largest on the NCS.

Sanctioned right at the beginning of the downturn in the oil and gas industry, it helped ensure activity for tens of thousands of people, especially in Norway, at a critical time for many,” says Opedal.

Arne Sigve Nylund, Executive Vice President for Development & Production Norway highlights the importance of Johan Sverdrup to the wider Norwegian economy: “The field will be operated from Equinor’s offices in Stavanger, whereas base and helicopter services will be delivered from Dusavika and Sola,” he explains.

“The oil transported from the field will also sustain activity at the Mongstad terminal outside of Bergen, and the gas will be exported to Kårstø. The importance of this field for both the national and regional economies in Norway cannot be overstated.

“In the same year that Norway celebrates 50 years since the Ekofisk discovery in 1969, which started the

Credit - Ole Jørgen Bratland © Equinor

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INDUSTRY FOCUS: OIL & GAS

oil and gas adventure in Norway, the start-up of Johan Sverdrup lays the foundations for another 50 years of industrial activity and value-creation on the NCS,” he adds.

FIRST OIL One of the major successes for Equinor at Johan Sverdrup has been the reduction in CO2 emissions during production. The field is powered with electricity from shore and CO2 emissions are estimated at 0.67 kg CO2 per barrel. CO2 emissions reductions from the field due to power from shore are estimated at more than 620,000 tonnes per year, totalling more than 25 million tonnes of CO2 over the life of the field. After 2022, Johan Sverdrup will also provide power from shore to other fields on Utsira High, including Edvard Grieg, Ivar Aasen and Gina Krog.

These project characteristics are

important when it comes to the sale and marketing of oil, which Equinor handles through oil trading units in Stavanger, London, Singapore and the USA. First oil started flowing from Johan Sverdrup to Mongstad, near Bergen, on 21 October. The oil flows through a 283 km pipeline in the North Sea to the plant at Mongstad where it is stored in caverns before being exported to markets around the world.

Irene Rummelhoff, Executive Vice President for Marketing, Midstream & Processing (MMP) in Equinor was delighted when the first oil started flowing. “This is a great day for Equinor and the Johan Sverdrup partnership,” she said. “First oil to Mongstad only a few days after production start confirms that the field is producing well. This day also marks the start of a new phase as we prepare to bring Johan Sverdrup oil to the international market.

// MONGSTAD PLAYS AN IMPORTANT ROLE IN REALISING SIGNIFICANT VALUE ASSOCIATED WITH THE FIELD // “Mongstad plays an important role in realising significant value associated with the field. At the same time, Johan Sverdrup triggers high activity at the plant and new opportunities for the future,” she adds.

The first cargo of oil from Johan Sverdrup has already been sold to China International United Petroleum & Chemicals Co., Ltd. (UNIPEC). UNIPEC is part of the SINOPEC Group, one of the world’s largest refiners. The cargo left Norway aboard the Orpheas, via

© Equinor

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EQUINOR

© Equinor

// JOHAN SVERDRUP IS TRULY A WORLD CLASS FIELD // the Suez Canal, heading straight for China. The vessel contains one million barrels with a market value of around USD 60 million.

“This is a big day for everyone who has worked for a long time on preparing Mongstad for oil from Johan Sverdrup. It has been a major effort involving plant modifications and completion of pipes. The work has been carried out properly and efficiently. As head of Mongstad I am proud of the great effort leading up to this day,” said Rasmus F. Wille, Vice President for the Mongstad complex.

FINANCIALLY SOUND In July, Equinor concluded a deal with Lundin which saw it further increase its ownership stake in Johan Sverdrup.

The agreement saw Equinor divest around 54.5 million shares in Lundin at a price of SEK 266.4 per share. Total consideration for the divestment of shares in Lundin amounted to around USD 1.56 billion. Equinor acquired a further 2.6% direct ownership share in the Johan Sverdrup field for a cash consideration of USD 910 million. Now, Equinor holds a 42.6% ownership share in the Johan Sverdrup field and a 4.9% shareholding in Lundin Petroleum.

“Since 2016 we have more than doubled the value of our investment in Lundin. This transaction gives us the opportunity to capitalize on this

value creation, and at the same time increase our direct ownership in the Johan Sverdrup field,” says Sætre.

“Johan Sverdrup is truly a world class field. An increased direct ownership share gives us the opportunity to create even more value for our shareholders,” he adds.

With the field coming on stream, and first oil reaching Mongstad, Johan Sverdrup is already generating value for shareholders, and providing quality oil with lower CO2 emissions than ever before. As an engineering demonstration and an example of a modern mega project, Johan Sverdrup is now setting the standards.

WWW.EQUINOR.COM

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A&P FALMOUTH

Ship Repair Expertise Vital to Energy Future PRODUCTION: Timothy Reeder

With seven dry docks across four strategic locations in the UK, A&P Group’s rich heritage of marine engineering skills and experience combines to deliver global engineering excellence to the commercial shipping, marine, offshore wind and oil and gas industries across the UK. Home to one of the world’s largest natural deep-water harbours, A&P Falmouth is the largest ship-repair complex in the UK and has just been declared Fit For Nuclear (F4N), paving the way for diversification into the civil new build nuclear market.

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Adonia at Falmouth in 2012 Š A&P Falmouth

INDUSTRY FOCUS: MARINE ENGINEERING

Falmouth Docks © A&P Falmouth

//

On its way to becoming the largest commercial ship repair and conversion specialist in the UK, A&P has earned an enviable reputation for delivering engineering strength across the commercial marine, major fabrication and defence sectors, pairing a highly skilled workforce and management team with first class waterfront engineering infrastructure and exceptional customer focus.

“Global ship repair, conversion and marine specialist A&P Group has a proud history of quality-driven engineering and marine excellence spanning six decades,” the group says of its journey to date. “With far-reaching capabilities from our four UK locations, we combine a rich heritage of marine engineering skills and experience to provide ship owners, governments and energy companies with all the precision skills needed to complete the most demanding projects.

“Our success stems from our ongoing commitment to being the partner of choice to all of our customers,” continues A&P Group.

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“Our team of industry leading marine technicians has years of experience at the cutting edge of multi-discipline project delivery.”

KEY RENEWABLE ROLE While much of A&P’s historic success has been based on its expertise in ship construction, it now finds itself one of the key contributors to the UK’s push for a greater reliance on offshore energy.

“A&P has honed its specialist expertise in the renewable energy sector by servicing the UK’s expanding offshore wind industry,” the group explains, and its strategic locations in A&P Tyne, A&P Tees and A&P Great Yarmouth are ideally located to serve offshore wind projects in the North Sea such as East Anglia One, Hornsea and Dudgeon wind farms.

With a highly-experienced project management team comprising architects, designers, fabricators and port operations specialists, large-scale fabrication capabilities and experience delivering technically challenging projects, “A&P is well placed to deliver a world-class service to the offshore

wind sector,” it surmises.

Although less well-publicised than the likes of wind and solar, tidal energy is one of the oldest forms of energy generation, a renewable form that converts the natural rise and fall of the tides into electricity. Much more predictable than forecasting the appearance of wind and the sun, it has great potential for future electricity generation.

Recognising the commercial need to constantly re-evaluate costs and so achieve lower energy costs, A&P Group works collaboratively with key players in this emerging sector.

“A&P Group offers worldwide development management for tidal technology developers and works collaboratively with major renewable companies throughout the sector,” the group says of its role. “Well positioned on the South West and North East coasts, A&P Group has the facilities, expertise and marine heritage to push the boundaries of tidal development and manufacturing techniques, in order to lower costs without compromising quality.”

A&P FALMOUTH

FALMOUTH FACILITY Situated in the world’s third largest natural deep-water harbour, A&P Falmouth is tasked with synthesising the group’s famed marine, fabrication and engineering expertise, bringing together its specialist ancient art of ship repair with the new and growing need to harness the power of renewable energy.

It is the largest ship-repair complex in the UK, with three large graving docks and extensive deep-water berthing

providing capacity for vessels up to 100,000 tonnes, and offers a complete range of marine repair services through on-site engineering, electrical, paint and fabrication workshops and historic relationships with specialist contractors and OEMs. Illustrative of A&P Falmouth’s full range cross-disciplinary capabilities came last year in the successful completion of leg extension and repairs on Fugro’s Excalibur Jack-Up vessel. An intensive two-month programme of work, at its end all eight of Excalibur’s legs had been repaired and upgraded, while two also required sections to be replaced and another pair received a 10-15 metre extension in length.

The largest in the Fugro fleet of jack-up barges, it is capable of working in water depths up to 40 metres and has been used extensively

e // FALMOUTH IS o th t s ONE OF THE MOST r v ice e STRATEGICALLYor t S pp IMPORTANT SuPORTS IN THE UK //

ine Ma r

&I

for installing foundations for offshore wind farm projects.

“A&P were able to deliver to our high standards of detail and precision, which are vital for a works of this kind,” said Les Lugg, Fugro Director.

“We have called on the team for Jack-Up mobilisation work in the past, providing support for mobilisations and demobilisation of our equipment as required, and their facilities and locality to our head office in Falmouth certainly adds value to our operations.”

trial ndus

Sectors

PERFECTLY POSITIONED A&P Falmouth’s location is particularly suited to jack-ups thanks to its large expanse of clear water, and this is just one of a long line of examples whereby A&P Falmouth’s prize location enables it to capitalise on high-profile, highvalue projects.

Support Services to the Marine & Industrial Sectors

EAPL provide an integrated approach to customers through the knowledge and experience of our multi-skilled management team.

From small repairs to large project managed contracts, our multi skilled management team can offer advice to help rectify the situation, procure & supply materials and send one of our rapid response engineering teams to meet a vessel in order to effect repairs. We pride ourselves on providing a safe, responsive, reliable & reputable service at very competitive prices to the delight & satisfaction of all our clients.

www.eap-ltd.co.uk • enquiries@eap-ltd.co.uk • T: +44 (0)1634 827369

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INDUSTRY FOCUS: MARINE ENGINEERING

Of its placement, Drystan Jones, Port Operations Director, remarks that, “Falmouth is one of the most strategically important ports in the UK, at the head of the South Western approaches and with the natural advantage of safe anchorage in the estuary.

“As a business, we have been able to build on the opportunities presented by our location, maximising the many opportunities to develop

// GLOBAL SHIP REPAIR, CONVERSION AND MARINE SPECIALIST A&P GROUP HAS A PROUD HISTORY OF QUALITYDRIVEN ENGINEERING AND MARINE EXCELLENCE //

Falmouth at Sunset © A&P Falmouth

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a thriving marine-tech business,” he underlines. “We are particularly wellsuited to jack up operations, including mobilisations for changes to blade racks and modifications. Around a hundred vessels come through the port each year.”

Falmouth again came into its own in June, undertaking a four-week contract to provide offshore services to Stena Drilling’s Stena IceMAX. Another feather in the A&P cap, the Stena IceMAX is the world’s first dynamically positioned, dual mast ice-class drillship, and was anchored in Falmouth Bay for the duration of its stay.

Falmouth Docks and Engineering Company (FDEC) oversaw the delivery of equipment and stores to the drillship’s undercover storage facility, as well as the transfer of those stores and the crews to the ship. “Stena Drilling needed a deep-water area where they could undertake crew changes and load stores prior to going to a job in southern Ireland,” explained

Jones. “We were delighted that they identified Falmouth as an ideal location to complete these works.

“We provided a shore-base for Stena which included a through-store capability for bringing the equipment they needed for the vessel through our secure storage facility and the crew transfer operation.

GOING NUCLEAR “A&P has been providing quality engineering services to the marine industry for over 155 years and has built up a highly skilled workforce over the last few decades,” Jones sums up of the group’s ability to adapt and diversify to the needs of the market, bringing it in line with the updated needs of the world today while retaining what it does best.

“The company’s vision is to continue to build the core business supporting the global shipping and maritime, oil and gas industries, while continuing to diversify further into the civil defence, nuclear and

A&P FALMOUTH

Falmouth Docks © A&P Falmouth

// THE COMPANY’S VISION IS TO CONTINUE TO BUILD THE CORE BUSINESS SUPPORTING THE GLOBAL SHIPPING AND MARITIME, OIL AND GAS INDUSTRIES, WHILE CONTINUING TO DIVERSIFY FURTHER // renewable energy sectors, as well as exciting emerging areas such as autonomous vessels.”

Just last month A&P Falmouth made major progress toward one of the key aspects of this vision, being granted Fit For Nuclear (F4N) status by

the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC). It is an award given only to companies which have benchmarked their performance against the standards demanded by the nuclear industry’s top tiers.

“Over the last two years A&P Falmouth has undergone a series of rigorous and challenging quality and cultural assessments, invested heavily in staff training and infrastructure and embedded Nuclear safety culture into every aspect of our ethos and operations,” said Steve Jones, Managing Director of Operations and Site Director at A&P Falmouth.

“At A&P Falmouth,” added Dave Cook, Sector Lead for Nuclear at A&P Falmouth, “we have the skills, flexible workforce and experience to pursue these specialist fabrication projects, as well as the capacity and space required for projects of this scale. Plus, our large on-site machine shop also brings some new and unique skills

to the table which can be used to produce large turbine shafts, bearing shafts and turn-buckles to Quality Grade 1 specifications. There are few businesses as well placed as ours to pursue this market.”

“As one of only a few companies in Cornwall to receive F4N recognition,” rounded off Steve Jones, “we are immensely proud of our achievement and it is testament to our team’s hard work, commitment and belief, that we have achieved this goal. Now we have the award the message is clear: A&P Falmouth is ready to work in the nuclear sector.”

WWW.AP-GROUP.CO.UK

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DEREGT CABLES

Helping You Dive Deeper and

Climb Higher PRODUCTION: William Denstone

Whether 5000 metres below the Arctic Ocean, or soaring thousands of metres into the air, DeRegt’s custom-engineered cable solutions deliver the best possible solution for any given situation and are built to last. Change at the top and a desire to be involved in projects right from the beginning is ushering in a new era in DeRegt’s century and counting of perfect cable solutions. www.emea-energy.net / 25

INDUSTRY FOCUS: OFFSHORE ENGINEERING

//

For more than a hundred years now, DeRegt has been leading the field of high-quality cabling, developing products ranging from the depths of umbilical subsea cables to the heights of tethers for balloons.

“Ever since 1912,” the company explains, “quality, craftsmanship and innovation are the pillars on which we have built our leadership in the development and manufacturing of high-quality cable solutions.”

DeRegt’s dynamic and static cable solutions are built to last, ensuring maximum performance over many years with applications in mining, seismic exploration, energy and scientific applications. These are applicable to both subsea and surface considerations. They are the product of a team highly experienced in working on conceptual design studies and translating these to industryleading products.

“We keep stretching our

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ambitions, delivering new and innovative cable solutions, so you can dive deeper and climb higher,” DeRegt stresses. “Our future lays where you take us as well as where we guide you. We have a firm belief in collaboration: together we can challenge the status quo.”

INNOVATION “To make sure that our customers stay ahead of the curve, we constantly invest in research and development, the engine behind our innovations in the field of highquality cables and terminations,” DeRegt declares, an ethos which enables it to propel clients’ systems beyond previous expectations. “This approach lets us take your project to the next level, from the immersive depths of the arctic seas to the blue skies of the far east.”

DeRegt has remained a leading name in the design and manufacture of custom-engineered, specialty

// WE KEEP STRETCHING OUR AMBITIONS, DELIVERING NEW AND INNOVATIVE CABLE SOLUTIONS, SO YOU CAN DIVE DEEPER AND CLIMB HIGHER // dynamic or static cable solutions for both subsea and surface applications for over a century. The range of applications covered by DeRegt’s array of cable solutions is expansive; on the mining side these cover seismic exploration, including survey vessels and ocean bottom cable systems, while defence needs such as anti-submarine warfare dipping sonar systems, mine sweeping systems and balloon tethered systems are also fulfilled.

Oil and energy and renewable energy systems, primarily wave and tidal, also feature highly, while innovative solutions like mooring systems and tsunami detection are also tackled.

“DeRegt constantly looks for research and development (R&D) projects to which we add on design and engineering,” the company underlines, “to form close relationships with clients, provide added project value and allow a comprehensive international discussion of innovative solutions.

“We can establish an experienced design and engineering team while working with external clients, combining industry-specific experience and knowledge to achieve a high-quality result. Our cutting-edge technology incorporates knowledgebased programmes developed in-house to enable the design and production of new concepts.”

EARLY SUPPLIER INVOLVEMENT

• Nitronic 50 HS Marine Cable • • High Strength Stainless • • Austenitic Stabilized • • UTS 1700N/mm2 Min • • Low Magnetic Permeability •

NITRONIC 50 Stainless Steel provides a combination of corrosion resistance and strength not found in any other commercial material available in its price range. This austenitic stainless has corrosion resistance greater than that provided by Types 316 and 316L, plus approximately twice the yield strength at room temperature. In addition, NITRONIC 50 Stainless has very good mechanical properties at both elevated and sub-zero temperatures.

And, unlike many austenitic stainless steels, NITRONIC 50 does not become magnetic when cold worked.

Also stocking NITRONIC 60 Stainless with a 230 KSI+ UTS. High strength bars from 0.125” to 4”Ø.

Nitrogen strengthened, with additions of Silicon and Manganese, has given this alloy a matrix to inhibit wear, galling, and fretting. Higher strengths are attainable through cold working the material and is still fully austenitic.

NITRONIC 60 is best known for its wear and galling resistance. Chromium and Nickel content give it comparable corrosion to 304 stainless steels, while having approximately twice the yield strength (in the annealed condition).

Toll Free in USA: 800-HPALLOY • 800-472-5569 Phone: 1-765-945-8230 • Fax: 1-765-945-8294 E-Mail: Fast@HPAlloy.com www.emea-energy.net / 27 Sales & Distribution: 444 Wilson St, Tipton, IN 46072

INDUSTRY FOCUS: OFFSHORE ENGINEERING

Too often, DeRegt was finding that a great, innovative system was being hampered by an insufficient consideration of the cabling involved, or underestimating their complexity.

“You can have two fantastic pieces of equipment,” DeRegt clarified, “but if you don’t have the right cable to connect them, they are likely to be worthless.”

In response, and to prevent further heartache with otherwise exceptional projects, DeRegt has identified the three key benefits of early cable suppler involvement, the first of which is consideration of all things time-related.

// THE IDEA OF LEADING DEREGT THROUGH ITS NEXT PHASE OF GROWTH APPEALED TO ME A GREAT DEAL, AND I AM THRILLED TO BE ON BOARD //

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“Depending on the complexity of the cable and the termination, the time to develop a cable and then getting it ready to be manufactured can vary from several months to over a year,” DeRegt explains. “This can seriously increase the time it takes to make your product commercially available or even force a delay to the execution of a job.”

Next up, optimisations suddenly become increasingly possible with early involvement, not least in eradicating the potential over or underestimation of cable diameter.

These can cause frustrating and damaging limitations to the operational capabilities of the system or product. “Furthermore, improved manufacturability and a more efficient production process result in a shorter lead time and an accelerated launch into the market,” DeRegt expands, illustrating how these benefits are also closely intertwined.

“If you involve your cable supplier at a later stage in the project, critical concept choices will already have been made,” DeRegt concludes on the critical matter of cost. “Involvement

during the concept phase enables the supplier to advise on materials with the best price and performance characteristics and to optimise the most efficient production method.”

NEW MANAGEMENT CHAPTER Following a period of profound organisational transformation for DeRegt, a new Managing Director has come to the fore to guide the company into its next stages. A process engineer by trade, Daniël Ruiter spent 16 years rising through the ranks at Stork, which supports the global oil and gas markets through a wide range of integrated solutions.

From there, Ruiter moved to UK-based Halma, a global group of life-saving technology companies, where he spent eight years before his interest was piqued by this new position at DeRegt.

“My forte is in technical niche companies that are international,” Ruiter explains of this perfect marriage. “I like that DeRegt is part of the larger Sercel group, which brings excellent opportunities. It is a highly professional background and

DEREGT CABLES

Providing optical fibre and cable solutions for the energy, oil and gas industries

As the need for more sophisticated fibre optics develops, AFL remains on the leading edge in the customisation of cables using different alloys and outer encapsulations. Through relationships with equipment manufacturers and a thorough understanding of customer needs in the market, AFL is able to serve this high-tech industry with a cable portfolio no other company can offer.

By producing the optical fibre, steel tubing and other key components in-house, AFL can serve customers from any location worldwide. Let AFL custom design and deliver fibre optic cable and connectivity products for your precise application.

www.AFLglobal.com EMEAsales@AFLglobal.com +44 1793 647200

setting.” Sercel has been a worldwide leader in the seismic acquisition industry and manufacturer of seismic equipment for over 50 years, and shares DeRegt’s commitment to research and development and pushing boundaries.

“I also get energised by the enthusiasm of the people, and the quality of the product. The idea of leading DeRegt through its next phase of growth appealed to me a great deal, and I am thrilled to be on board.”

Even for Ruiter, the extent of what DeRegt is accomplishing on a daily basis came as a surprise initially. “I hadn’t quite realised the extent of the technical complexity of the product,” he admits. “It requires an enormous amount of expertise, knowledge and skills to build a cable of the quality you expect from DeRegt. You have to

think the whole thing through very carefully if you want to do it well.”

Finishing with his vision for DeRegt under his stewardship, it is clear for Ruiter that expansion will spell success, while superior experiences will keep new clients coming and existing ones returning.

“I think that the primary challenge is to grow powerfully and deeply in all four markets,” he says. “To invest intelligently in all four at the same time is quite a challenge.

“The opportunity is to outperform and exceed the customer experience; to surprise customers with both cable performance and service experience that exceeds their expectations. Our objective is to get customers to interact with us, so we in turn can create the perfect cable for them. Together, we excavate their

specific needs and then try to exceed their expectations.

“We can help them outperform by working together with them. That is a great opportunity for us and for them. That is what excites our people, to make those really special cables. And it excites our customers.

We see that come back in customer surveys as well: DeRegt offers them something better.”

WWW.DEREGTCABLES.COM

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GEOSEA

On the Crest of a Renewable Wave PRODUCTION: Timothy Reeder

Dredging, Environmental and Marine Engineering NV (DEME) is an international group of specialised companies and GeoSea is its specialist in complex offshore marine engineering projects. GeoSea offers a wide variety of services to owners of offshore assets, marine consultants and marine contractors in the sectors of offshore Oil & Gas, Renewable Energy and Civil Engineering. “GeoSea has grown to be a reliable and recognised services provider for the majority of European utility companies in the field of green energy development,� the company begins. www.emea-energy.net / 31

INDUSTRY FOCUS: MARINE ENGINEERING

//

“GeoSea offers first-class global offshore contracting solutions to clients, and has the skills, the technology, and the equipment to perform in the most challenging marine environment.”

This is the claim of Belgian dredging, marine engineering and environmental group DEME’s complex offshore marine engineering specialist, and the list of services it is placed to provide more than backs it up.

Whether hammering and drilling large diameter piles for offshore constructions such as jetties, mooring facilities, bridges, wind farms, or installing offshore structures, offshore wind farms and platforms and even performing geotechnical investigations at large depths, GeoSea can embrace and deliver on the challenge.

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EVER-EXPANDING What is more, GeoSea is always expanding its fleet, capabilities and specialisms, and looking to take on bigger tests. Within its joint company High Wind, where it partners with Sarens, G&G International, SBE and PMV, GeoSea is developing an installation tool to set up offshore wind turbines under high wind conditions, which would prove insurmountable for most other operators.

It has already been responsible for, “the most important innovation in wind turbine installation in years,” the Boom Lock© which permits the safe installation of all wind turbine components in winds of up to 15 m/s.

This drastically increases safety and allows double digit cost reduction across installation vessels, installation crews and related costs, as well as increased income due to early

// GEOSEA HAS GROWN TO BE A RELIABLE AND RECOGNISED SERVICES PROVIDER FOR THE MAJORITY OF EUROPEAN UTILITY COMPANIES IN THE FIELD OF GREEN ENERGY DEVELOPMENT // completion of the wind farms.

“We are very proud to have completed such a challenging development with many parties involved and many interfaces in such a short period,” commented Johan

GEOSEA

// MARITIME-RELATED CHALLENGES ARE DOMAINS WHERE WE AIM FOR SUSTAINABLE SOLUTIONS // Heiler, General Manager of High Wind.

“We are also very pleased to have it ready for our first client at the start of the new installation season.”

GeoSea also offers supporting and logistic services as well as survey and inspection services and maintenance and repair services of offshore structures. Its ability to provide innovative techniques and high operational reliability comes to a great degree from its hightech equipment; GeoSea’s jack-up

platforms include Innovation, Neptune and De Zeebouwer. Always looking ahead, construction is set for imminent completion on GeoSea’s ‘next generation’ offshore wind installation vessel Orion, which has been equipped with a 2000 tonne deckhouse.

In October, GeoSea revealed that Orion was en route to Europe for final outfitting, with a Liebherr crane to give the 216.5 metre long vessel lifting capacity of 5000 tonnes.

Once in service Orion will transport the monopiles, jackets, wind turbine components and other structures associated with the construction of giant multi-megawatt wind turbines.

The vessel will join DEME’s fleet of over 100 vessels including jack-ups, crane vessels, dredgers and crew transfer vessels.

HORNSEA 1 GeoSea has been central to the construction of some of the world’s largest-scale offshore wind farms, and they don’t come any bigger than Hornsea Project One. Newly-received Apollo, built by Croatia’s Uljanik Shipyard, was called into action at the beginning of the year, with the high wind specialist despatched to the Hornsea Project One offshore wind farm to support its foundation installation campaign. Equipped with four 106.8m long lattice legs that allow it to work at depths up to 70 metres, Apollo has been designed for wind turbine and foundation installation, decommissioning and heavy-load transportation. Ørsted is famed as, “a renewable energy company that takes tangible action to create a world that

NG-5500X SELF-PROPELLED MULTI-PURPOSE JACK-UP

DEEPER WATERS & LIFE CYCLE SUPPORT

THE PIONEERS OF OFFSHORE ENGINEERING

www.gustomsc.com

www.emea-energy.net / 33

INDUSTRY FOCUS: MARINE ENGINEERING

// WE SEE THE TRANSFORMATION OF THE ENERGY MARKET AS A GREAT OPPORTUNITY // runs entirely on green energy,” and is currently overseeing the construction of the Hornsea Project One, located 120km off the Yorkshire coast. The 1.2GW wind farm is poised to be the world’s largest array when commissioned in 2020, and will feature 174 Siemens Gamesa SWT7.0-154 turbines which will power more than one million homes.

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Offshore construction started in January 2018, when the first monopile foundation was installed

by GeoSea’s installation vessel, Innovation. Ørsted announced in October that the last of the project’s 174 wind turbines had been installed at Hornsea 1, the world’s largest offshore wind farm. This time it was DEME Group’s Sea Challenger that proved paramount to the installation.

Four wind turbines were loaded on to the vessel each time, and on average, it takes around 12 hours of precision working to install a turbine in full. Standing a mighty 190m above sea level and with its three 75m long blades, each 7MW wind turbine will be sufficient to power

a UK home for over a day with one single rotation.

“The milestone of this last turbine being installed only nine months after the first one was erected is just one small part of this record-breaking project,” expressed Duncan Clark, Ørsted Programme Director for Hornsea 1. “Hornsea 1 has truly paved the way for the next generation of offshore wind farms. At the time of taking on the wind energy project, its scale and the technical pioneering required seemed a Herculean challenge, but a truly extraordinary effort from all those involved have managed to make this impressive feat of engineering the new norm.”

GEOSEA

NEW LEADERSHIP At the start of 2019, Luc Vandenbulcke took the reins of DEME Group. A civil engineer employed for 21 years within the group, he can proudly claim to have cofounded and led GeoSea, DEME’s fastest growing subsidiary company. This will lend itself perfectly to leading an organisation which wholly embraces constant change, welcoming innovation and navigating the evolving nature of sustainability.

In February, DEME integrated its various offshore subsidiaries, including GeoSea, Tideway, A2Sea and EverSea, into one unit, consolidating all of the company’s offshore activities, expertise and capabilities from both its offshore wind and oil and gas

activities. “We see the transformation of the energy market as a great opportunity,” Luc Vandenbulcke said.

“By joining forces and expertise, combined with our state-of-the-art fleet, we are confident that DEME Offshore will be in a unique position to help our customers achieve their aspirations in the offshore oil, gas and renewable energy sector.”

Vandenbulcke makes clear that the vision for DEME now is building upon what predecessor Alain Bernard has achieved, to keep pushing the boundaries of what is possible for the Group as a whole. “We are developing a number of strong activity lines and through all of these activity lines we are building upon our vision

of ‘offering solutions for global, worldwide challenges’,” he informs.

“For us, maritime-related challenges are domains where we aim for sustainable solutions. Our activity lines include: dredging – which continues to grow with innovation at the core, offshore with a sharp focus on sustainability and renewables but also in oil and gas, environmental remediation works, and infrastructure works.”

WWW.DEME-GROUP.COM

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BOROUGE Plastics Made with Innovation, Value and

Sustainability in Mind PRODUCTION: Benjamin Southwold

Operating in one of the most exciting manufacturing industries in the Middle East, Borouge is able to provide a differentiated and innovative range of polyethylene and polypropylene plastics solutions for infrastructure applications, automotive components and advanced packaging. The company is continually seeking growth opportunities, and with selling products that will leak into the environment no longer a viable proposition, it does so with sustainability at the forefront of its collective mind. www.emea-energy.net / 37

INDUSTRY FOCUS: PETROCHEMICALS

//

A joint venture between Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies and Austria-based Borealis, a leading provider of chemical and innovative plastics solutions, Borouge is a ground-breaking visionary at the forefront of the next generation of plastics innovation.

“Borouge provides innovative, sustainable and value creating plastics solutions for infrastructure - pipe systems, and power and communication cables - automotive and advanced packaging application,” the company details. “These solutions address global challenges such as climate change, food protection, access to fresh water, energy conservation, healthcare and waste management.”

Based in the United Arab Emirates and with its marketing and sales head office in Singapore, Borouge employs more than 3000 people of over 40 nationalities, serving customers in 50 countries across the Middle East, Asia and Africa. Following its creation in 1998, Borouge was able in 2010 to triple

its Abu Dhabi plant’s annual production capacity to two million tonnes.

Borouge has also succeeded in adding Borstar® enhanced polypropylene to its product portfolio.

This is Borealis’ advanced multimodal proprietary technology for manufacturing polyethylene (PE) and polypropylene (PP), which supports the production of a wide range of enhanced PE and PP products for the most demanding applications by enabling molecular design. It also delivers many improvements in key environmental aspects such as energy efficiency and raw material recycling.

Further expansion means that Borouge and Borealis today have a combined annual production capacity of approximately eight million tonnes of polyethylene and polypropylene.

Today, Borouge is a leading provider of innovative, value creating plastics solutions and is expanding its commercial and logistics network in the Middle East and Asia and investing in its Innovation Centre in Abu Dhabi and Application Centre in Shanghai.

“Focused on our company mission,

value creation through innovation, we ensure that our customers throughout the value chain, around the world, can rely on differentiated products and reliability of supply,” the company states.

SUSTAINABILITY TOP PRIORITY “Our vision is to be the recognised leader in creative plastics solutions that have a positive impact on society today and tomorrow,” Borouge sets out. The responsible use and management of plastics has never been felt more keenly in society, and Borouge has made a point of placing this at the top of its priorities.

In 2016 Borouge’s 1 & 2 plants in Ruwais were certified by RINA Services, resulting in ISO 50001:2011 certification. Borouge has been working with RINA Services for a number of years to audit and certify the company’s quality, environment and energy management systems, and Borouge’s head offices in Abu Dhabi and Singapore, the company’s petrochemicals manufacturing facility in Ruwais, the compounding manufacturing plant in Shanghai and

NAPCON Solutions save energy and costs We at Neste Engineering Solutions are experts of oil refining and chemical industry energy efficiency since early 1980’s. We were amongst the first, who used pinch-technology in design of new process units as well as in optimization of old ones.

Ever since, we have added considerable value for the customer in form of improved energy efficiency. In 1995 we performed a total site analysis taking traditional pinch analysis even further and in 1999 we perfected the analysis method to become comprehensive in energy optimization.

Our combined approach of high level process know-how and modelling skills, pinch-technology, equipment expertise and automation solutions guarantee the most feasible solution with short pay back, or even without investment. We are Europe’s leading energy efficiency provider within the hydrocarbon industry and offer the entire path to improved energy efficiency from pre-study to improvement implementation and energy savings verification.

We are very proud of our continuous cooperation with the esteemed ADNOC-group of companies i.e. Borouge, TAKREER, Gasco and ADMA-OPCO, for whom we have delivered several projects with NAPCON solutions for improved energy and cost efficiency and operational optimization. We provide our customers with a comprehensive service and product offering including consulting services and a rigorous set of NAPCON solutions complete from process unit optimization to plant wide dynamic optimization, real-time information solutions such as energy and emission monitoring as well as product tracking and training solutions topped with high fidelity operator training simulators and serious games.

Get more information on NAPCON solutions www.napconsuite.com

INDUSTRY FOCUS: PETROCHEMICALS

a network of offices across the Asia Pacific region are all certified.

Abdulaziz Alhajri, former CEO of Borouge and now ADNOC’s refining and petrochemical Director, was clear as to the importance of this verification throughout the organisation.

“Identifying key opportunities to reduce energy consumption per tonne of production and thereby increasing our energy efficiency has been a major win for Borouge,” he said at the time.

“Adopting a phased approach, we decided that we should implement an Energy Management System in our petrochemical complex first and further roll it out to other operating companies. As we move ahead, we will continue to explore avenues to improve our energy performance.”

PROJECT STOP Since 2013, Borouge has also supported the massive Waste Free Environment clean-up campaign, together with strategic partners such

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as Fertil and Chemaweyaat and held annually in the UAE and Asia. Borouge has also worked for many years with the Environment Agency of Abu Dhabi, most notably in the launch of the Sustainable Campus Initiative.

Borouge has just become a strategic partner of Project STOP, set up to establish new solutions and models that can be rapidly scaled up across the whole plastics chain, from plastic usage to waste collection and recycling. Its three key objectives are to achieve zero leakage of waste into the environment, increase resource efficiency and recycle more plastics, as well as create benefits for the local communities.

“Project STOP’s positive impact is proof that partnerships between industry and government can generate effective solutions for sustainable waste management and the prevention of marine litter,” said Alfred Stern, Borealis Chief Executive, which co-founded the initiative with SYSTEMIQ to prevent ocean plastic leakage.

“We are proud to be a strategic partner of Project STOP, working with partners and communities, to establish a plastics circular economy for waste management in Southeast Asia,” said Ahmed Omar Abdulla, CEO of Borouge. “At Borouge, the difference we have been making as partners of Project STOP is enormous since joining the programme in 2017, and we are committed to giving a new life to post-consumed plastics, scale up our efforts and continue making impact.”

// OUR VISION IS TO BE THE RECOGNISED LEADER IN CREATIVE PLASTICS SOLUTIONS THAT HAVE A POSITIVE IMPACT ON SOCIETY TODAY AND TOMORROW //

BOROUGE

EXPANDING EXCELLENCE Borouge’s dedication to both excellence and outstanding performance were recognised in its being judged in the gold category of the prestigious Sheikh Khalifa Excellence Awards (SKEA), coming just two years after the company took home the same prize. “It is a great honour to receive this award which clearly embodies the hard work, dedication and remarkable performance of every employee at Borouge,” effused Ahmed Omar Abdulla.

“Having proudly received this prestigious award twice under the gold category strengthens our leading position as a major local producer of

// BOROUGE PROVIDES INNOVATIVE, SUSTAINABLE AND VALUE CREATING PLASTICS SOLUTIONS //

petrochemicals and a key player in the UAE’s economic development.”

Borouge’s commitment to excellence unlocks opportunities and growth for both itself and its customers, most recently embodied in the award to TechnipFMC, Maire Tecnimont and WorleyParsons of three major contracts for the fourth phase of the Ruwais petrochemicals complex.

The work will include the world’s largest mixed feed cracker, the fourth in the Borouge complex and boasting a 1.8 million tonne annual ethylene output.

It will have the capacity to produce 3.3 million tonnes overall of olefins and aromatics using a variety of feedstocks such as Ethane, Butane and Naphtha, coming from ADNOC’s refinery and gas processing facilities. Both ADNOC and Borealis intend to finalise the downstream configuration within three months, following the front-end engineering and design (FEED) award.

“The mixed feed cracker is unique as it enables many new petrochemical

building blocks to be available in Ruwais for the first time, thereby transforming Ruwais into an even more advanced integrated refining and petrochemicals complex,” said Abdulaziz Alhajri. “The new project will significantly contribute to achieving ADNOC’s growth ambitions as well as those of Borouge.”

“The mixed feed cracker is not only a new milestone in Borouge’s history, it is also a new step forward in Borealis’ growth strategy in the Middle East,” appended Alfred Stern, Borealis Chief Executive. “The project, which reflects the strength of our strong partnership with ADNOC, ideally embodies Borealis’ commitment and willingness to continue contributing to the development of the UAE through Borouge.”

WWW.BOROUGE.COM

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ANGLO AMERICAN PLATINUM

Strong, Shining &

Responsible PRODUCTION: Karl Pietersen

Production and finances are strong at Anglo American Platinum. The company has also started the process of being audited by the Initiative for Responsible Mining Assurance’s (IRMA) ‘Standard for Responsible Mining’ in Zimbabwe.

Combine this with the news of a newly agreed wage deal with unions and you have a business with much to be excited about in the future.

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Š Anglo American - Polokwane Smelter

INDUSTRY FOCUS: MINING

//

Most know platinum as the valuable silver-coloured metal used to forge jewellery including rings and necklaces. But platinum is so much more than decorative; it is in fact one of the most important precious metals in the world. With the chemical symbol Pt and atomic number 78, this noble metal is popular because of its strength resisting corrosion. Today, platinum’s most important use is in vehicles as a catalytic convertor.

Discovered in South Africa in 1924 in the Bushveld Igneous Complex, platinum is now one of the country’s chief exports and South Africa is the world’s largest producer, exporting around a quarter of total global exports in 2018.

The clear-cut industry leader in this space is Anglo American Platinum, a business rooted in South Africa and recognised as the world’s largest primary producer of platinum group metals, offering up more than 35% of the world’s annual supply.

Established in 1995 in its current form, and part of the wider JSE and LSE-listed Anglo American group which is more than 100 years old,

// THIS IS VERY MUCH A STRONGER BUSINESS TODAY BECAUSE OF THE ACTIONS WE HAVE TAKEN IN RECENT YEARS AND I’M PLEASED TO SAY THAT THERE ARE FURTHER OPPORTUNITIES TO UNLOCK THE FULL POTENTIAL FROM OUR OPERATIONS // 44 / www.emea-energy.net

Anglo American Platinum employs some 30,000 people across various divisions and mining operations.

2019 has been a turbulent year for the company, characterised by both highs and lows. Decent financial and production results, along with global recognition for responsible mining, have been diluted by the threat of strikes which could damage the reputation of the miner, already hurt by strikes of 2012 and 2014.

But, with looming industrial action now seemingly averted, the time for Anglo American Platinum to push forward is here. In November, the company signed a three-year wage agreement with the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM) and UASA – The Union (UASA) which would see employees receive an annual increase of R1000 per month in basic pay in years one, two and three for bargaining unit employees, or 5.5%, whichever is greater for each year of the agreement. In addition, the base on which salary-related allowances and pension contributions are calculated will increase over the three-year period to bring it back in line with basic wages; and an ex-gratia payment of R1000 in July 2020 and R1500 in July 2021 will be delivered.

For Anglo American Platinum, this change results in an increase of the total labour cost-to-company of 7.4% in year one, 6.1% in year two and 6.3% in year three - 6.6% on average over the three years.

“We are very pleased to have reached an agreement, and we welcome the collaborative and constructive engagements with the unions throughout the process,” said Chris Griffith, CEO of Anglo American Platinum. “We believe this agreement will ensure the business can remain sustainable through the typical PGM price cycles, while our employees will benefit from meaningful pay and other increases.”

RESPONSIBLE MINING In May 2019, Anglo American Platinum opened its new smelter at the Unki Mine in Zimbabwe. This customdesigned, cost-efficient facility is set up to meet the current output at Unki but can be upgraded in the future should the need arise. The equipment smelts Unki concentrate resulting in furnace matte which is crushed and then moved to South Africa for further processing. Construction was announced back in 2015 and heat up began in August 2018.

Upon opening, Unki Mines Chairman James Maposa said: “The Unki smelter is a strategic investment for our company and will increase our processing capacity significantly. Unki has heeded the government’s beneficiation call, a key pillar of Zimbabwe’s goal to create value, employment and accelerate industrial development from its mineral resources. Anglo American Platinum acknowledges that we have a responsibility to contribute to the country’s economic and social development, and to ensure that our contribution here addresses key national priorities.”

And the success has continued at Unki. In September, Anglo American Platinum announced that the mine would be the first in Zimbabwe to commit to independent auditing against the Initiative for Responsible Mining Assurance’s (IRMA) ‘Standard for Responsible Mining’.

This standard looks at 26 areas of mining including working conditions, human rights, community and stakeholder engagement, environmental impact, and planning and financing reclamation and closure, performing well in its initial self-assessment.

Anglo American plans to measure many of its operations against the IRMA standard, aiming to have all assessed against credible responsible mining standards by 2025.

Chris Griffith said that the assessment helps to keep mines

ANGLO AMERICAN PLATINUM

// WE WELCOME THE COLLABORATIVE AND CONSTRUCTIVE ENGAGEMENTS WITH THE UNIONS THROUGHOUT THE PROCESS //

IRMA is a voluntary certification system meant to complement strong laws and government oversight, it is also the world’s first and only global definition of what constitutes leading practices in social and environmental responsibility for large-scale mining operations developed through consultation with a range of stakeholders. It is the product of ten years of collaboration between our stakeholders that seeks to emulate for mining what has been done with certification programmes in fair-trade agriculture, responsible forestry and sustainable fisheries, as examples.

“We are extremely pleased to see Anglo American’s Unki mine take the lead and begin the thirdparty certification process. We hope that this paves the way for others across the industry to make a similar commitment.”

IS

B O -BB 4 IS 5 EE 10 O 0 % 51% 90 01/ Le 0 I v B la Bl 1 C SO el ck ac er 14 3 W k O tifi 00 om w ed 1/ an ne d O w ne d

operating to international best practice.

“The IRMA self-assessment tool has provided us with a valuable opportunity to measure our performance at Unki mine against international best practice on a wide range of environmental and societal factors,” he said. “We are immensely proud of the work the team has been doing at Unki on responsible

and sustainable mining, and we look forward to continue leading the way for our other mining operations.”

Anglo American CEO, Mark Cutifani agreed, saying: “We have a longstanding commitment as a leader in responsible mining, with numerous examples of our progressive business decisions across many decades. We are pleased that Unki will be the first mine in the world to publicly commit to a third-party audit to determine its performance against IRMA’s Standard for Responsible Mining. As our customers and end consumers who rely on our metals and minerals rightly expect the highest standards of ethical production, we will be putting all our managed mines through such rigorous certification processes by 2025.”

Aimee Boulanger, Executive Director of IRMA commented: “While

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INDUSTRY FOCUS: MINING

© Anglo American - Polokwne Smelter

© Anglo American - Tumela Mine One Shaft

ONGOING STRENGTH In July, Anglo American Platinum announced strong interim results amid tough market conditions and a difficult economic back drop in South Africa. The highlights included EBITDA growth of 82% to R12.4 billion, headline earnings per share up 120% to R28.15 per share, return on capital employed (ROCE) increased to 45%, and free cash flow from operations increased by 126% to R4.3 billion.

Importantly, the company also reported zero fatalities in the first half of the year, with total recordable injury frequency rate (TRCFR)

declining to the lowest on record.

“We are pleased to report that Anglo American Platinum has delivered safe, responsible and profitable production in H1 2019.

We are committed to eliminating fatal incidents on a permanent basis and ensuring safe operations, while delivering leading returns in the PGM industry. Thanks in part to strong fundamentals for the PGM basket price, we have increased EBITDA by 82% to R12.4 billion, resulting in an increase in the EBITDA margin to 32% and doubling our return on capital employed (ROCE) to 45%,” said Griffith.

“This is very much a stronger business today because of the actions we have taken in recent years and I’m pleased to say that there are further opportunities to unlock the full potential from our operations,” he added.

Platinum Grade Metal (PGM) production was consistent throughout H1 and only decreased by 2% on the previous year, thanks to Eskom’s power disruptions in Q1. Anglo American Platinum’s PGM portfolio includes platinum, palladium, rhodium, gold, iridium and ruthenium metal in concentrate.

// WE ARE EXTREMELY PLEASED TO SEE ANGLO AMERICAN’S UNKI MINE TAKE THE LEAD AND BEGIN THE THIRD-PARTY CERTIFICATION PROCESS. WE HOPE THAT THIS PAVES THE WAY FOR OTHERS ACROSS THE INDUSTRY TO MAKE A SIMILAR COMMITMENT // 46 / www.emea-energy.net

ANGLO AMERICAN PLATINUM

Chris Griffith Anglo American Platinum CEO

// WE ARE IMMENSELY PROUD OF THE WORK THE TEAM HAS BEEN DOING AT UNKI ON RESPONSIBLE AND SUSTAINABLE MINING, AND WE LOOK FORWARD TO CONTINUE LEADING THE WAY FOR OUR OTHER MINING OPERATIONS // “We are committed to the next phase of value delivery and work is underway to realise value at existing operations. Our aim is to achieve, and

beat, world best operating practices and implementing FutureSmartTM technology and innovation to enable material efficiency improvements.

Market development continues to progress, with a number of achievements made in H1 2019, including investments into the green economy and new product launches to promote platinum demand. Finally, project studies continue to assess how to unlock optimal value from Mogalakwena and the Mototolo/Der Brochen ground,” said Griffith.

In September, on release of the company’s third quarter production report, positive progress continued.

Zero fatalities occurred, PGM production consistency was maintained at 1,141,200 ounces, and the PGM production outlook for 2019 was maintained between 4.2 - 4.5 million ounces. The only major identified threats for the final quarter were

performance of power utility Eskom.

Production of this precious and much-needed metal is not easy. It requires significant monetary and time investments, and operations need constant nurturing to ensure efficiency.

Anglo American Platinum has mastered this practice and with many expansion plans in place to ensure safety, environmental and production statistics, Anglo American Platinum is still positioning itself as a business which leads its industry, and works as an example for others to follow.

WWW.ANGLOAMERICANPLATINUM.COM

www.emea-energy.net / 47

TANESCO

Bringing Light

and Growth Across Tanzania PRODUCTION: Timothy Reeder

Tanzania Electric Supply Company (TANESCO) is the sole provider of electricity in Tanzania, and owns the vast majority of the electricity generating, transmitting and distributing facilities across the Tanzania mainland. It has worked tirelessly to electrify more and more rural areas of the terrain which would be otherwise unconnected, and now looks to hybrid solutions to secure the country’s lofty generation aims.

48 / www.emea-energy.net

INDUSTRY FOCUS: INFRASTRUCTURE

//

At the turn of the century the first public electricity supply in Tanzania, then Tanganyika, was established by German colonialists at Dar es Salaam. In 1931, the Government handed over the undertaking at Dar es Salaam to private enterprises; one of these companies was the Tanganyika Electric Supply Company Ltd (TANESCO), later merging with another - the District Electric Supply Company Ltd (DARESCO) - in 1964 and becoming the Tanzania Electric Supply Company (TANESCO) that has shaped the country’s power today.

Following Tanganyika’s gaining independence in 1961, the government acquired the company in its entirety by 1975, becoming its sole shareholder.

Today, TANESCO is a parastatal organisation under the Ministry of Energy and Minerals and generates, transmits, distributes and sells electricity to the Tanzania mainland, and sells bulk power to the Zanzibar Electricity Corporation (ZECO) which is in turn sold to the islands of Unguja and Pemba.

The Tanzania Development Vision 2025 envisages that GDP per capita will rise from USD$640 to at least USD$3000 by 2025. Central to achieving this will be rapid economic growth propelled by reliable, affordable and environmentally friendly electricity

50 / www.emea-energy.net

supply, and generation capacity will have to increase from the current 1583 MW to at least 10,000 MW by 2025.

“Our mission is to generate, transmit and supply electricity in the most effective, competitive and sustainable manner possible. We strive to be an efficient and commerciallyfocused utility supporting the development of Tanzania.”

RURAL ELECTRIFICATION Electrification of rural areas and small townships has been a major priority for TANESCO throughout its operational lifetime, since the declaration of a 1965 policy by the Tanzanian Government.

It was agreed that if TANESCO was required to provide power supply to more economically precarious townships, this would be subsidised by either the Government, the local authority or prospective large consumers in the areas.

TANESCO’s five off-grid substations remain vital to bringing power to areas which would be otherwise unconnected, and the Netherlands’s Zwart has been an integral partner to making this reality.

“Our power plants ensure that there is reliable and stable electricity in rural and remote areas,” the company explains. “A large area in Tanzania has

// WE STRIVE TO BE AN EFFICIENT AND COMMERCIALLYFOCUSED UTILITY SUPPORTING THE DEVELOPMENT OF TANZANIA // access to power thanks to Zwart, where it has more than 25 years’ experience of facilitating off-grid power on behalf of Tanesco. Our specialists have realised more than one hundred of these reliable and cost effective power plants in Africa.”

Zwart’s off-grid power plants are trusted to deliver power in the most challenging environments throughout the world, helping to provide communities, businesses and utilities with a reliable source of power in places where the electricity grid is unreliable or not present. The plants utilise a mix of solar, diesel and, where possible, battery storage, to ensure that reliable, cost effective power is on tap at all times.

“Zwart’s Energy Solutions enables businesses and communities to flourish in regions where the investment

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needed to connect to the grid is just too great,” Zwart clarifies, “or, in the case of a national park in Tanzania, where installing overhead lines would have impacted the local environment. In such cases an off-grid power plant provides the perfect solution.”

BANKING ON MINING A new revenue plan sees TANESCO looking to mining firms to raise revenues, as it begins operating profitably. Large mining companies produce hundreds of megawatts of electricity using subsidised diesel in order to meet demands for better power alternatives.

However, improved generation and distribution capacity which increases alongside TANESCO’s financial might is leading the government to conclude that all mining companies should be connected to the national grid. Energy Minister Medard Kalemani is adamant that companies should proactively seek new business, rather than submitting to their historic tendency to wait for it to come to them.

He added that with TANESCO becoming a profitable entity, the time had come for money to be reinvested into power generation to meet the demands of various segments.

“We no longer depend on government subsidies,” Kalemani stated. “We expect to register a Sh9 billion operating profit this year. In

// A COMBINATION OF SOLAR POWER AND DIESEL GENERATORS ENSURES THAT ELECTRICITY IS GENERATED IN THE MOST ENERGYEFFICIENT AND ECONOMICAL WAY // www.emea-energy.net / 51

TREATED TIMBER PRODUCTS (TTP) SPECIALIZES IN THE PRODUCTION OF TRANSMISSION, TELEPHONE, FENCING AND BUILDING POLES. TTP was established in 1939 and is now the largest producer of Utility Poles in the Southern Hemisphere. With our six treating plants strategically positioned near Durban and Maputo harbours, we are able to serve the local and export market with comparative ease.

Our transmission poles are pressure treated with either Creosote or Copper Chrome Arsenic (CCA) to meet the South African National Standard SANS 754:2013, Tanesco S11 and Kenya KS516 or any other recognized national VY PU[LYUH[PVUHS ZWLJPÄJH[PVU TTP carries a large stock of treated and untreated poles, giving us the ability to meet large orders at short notice.

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TANESCO

2015, TANESCO’s revenues stood at Sh9 billion per week but this year we are making Sh46 billion per week.

If we can connect large mining companies, we will raise our earnings.”

Kalemani conclude by urging mining companies to present their transformer requirements to TANESCO, in order that they can be distributed to the companies as required.

TANESCO is also mobilising in collaboration with the Energy and Water Utilities Regulatory Authority (EWURA) to curb the illegal connection to power in the Arusha region. Arusha Region TANESCO Manager Herini Mhina explained that various strategies had been implemented to combat the scourge, including the compulsory registration of all electrical contractors

// OUR MISSION IS TO GENERATE, TRANSMIT AND SUPPLY ELECTRICITY IN THE MOST EFFECTIVE, COMPETITIVE AND SUSTAINABLE MANNER POSSIBLE //

within the EWURA system and forbidding any unregistered personnel from performing electrical work.

“We will deal with all electrical contractors who sign customers’ forms outside TANESCO offices because that is not allowed; that has to be done inside our offices within the laid down procedure and there will be no bureaucracy.” Mhina clarified that this would be closely monitored in order to eliminate the possibility of further contraventions.

SOLAR FUTURE Africa is a leader in hybrid power; with only 22% of Africa’s population having access to power, areas with suitable climates are ideally placed to house a solar hybrid power plant as a vital solution. Faced with rapid growth in electricity demand, the Government of Tanzania has set the goal of increasing the installed generating capacity, reflected in the implementation of the 2016 update of the electrical system master plan.

In tandem, TANESCO has decided to increase the share of renewable energies in its energy mix to 40%, for both environmental and financial reasons.

The Citizen reported at the end of last year that TANESCO had received 52 bids from local and international solar

developers desperate to be a part of the construction of large-scale solar PV projects across six regions. With a combined capacity of 150 MW, TANESCO aims to achieve power generation from plants in the regions of Dodoma, Singida, Shinyanga, Mwanza, Simiyu and Iringa over the next two years.

The tender scheme would represent the first real attempt to bring large-scale solar to the sub-Saharan African nation, if implemented, and would significantly boost Tanzania’s efforts to implement mini-grid solar projects to improve the share of renewables in its energy mix. Zwart’s own hybrid solutions are found throughout Africa, and are crucial to enabling communities to flourish.

“Our hybrid off-grid plants power communities and businesses in developing countries. A combination of solar power and diesel generators ensures that electricity is generated in the most energy-efficient and economical way. We have already installed over 100 power systems in Africa,” Zwart concludes, “driving local businesses and connecting these communities to the world.

WWW.TANESCO.CO.TZ

www.emea-energy.net / 53

SASOL

Sasol Enters Post-LCCP

Build Era With New CEO PRODUCTION: Joe Forshaw

Leading South African petrochemical business, Sasol, has faced an ongoing spate of issues since embarking on the construction of a new chemical production plant in Louisiana, USA. The past few years have been difficult for South Africa’s largest taxpayer, but the build is almost complete and the company is looking to restore confidence and build a culture of excellence as it pushes forward in search of growth.

//

It’s not business as usual for international petrochemical business, Sasol. The South African company, which has exposure in more than 30 countries, is going through a tumultuous period as it approaches full completion of its ambitious Lake Charles Chemical Project (LCCP) in Louisiana, USA. Founded in 1950, headquartered in Sandton, Sasol (South African Synthetic

Oil Ltd) is famous for using specialist technology to produce chemicals, oil and liquid fuels. Traditionally, the business – which employs some 31,000 people – has used coal liquefication techniques to produce synthetic oil, diesel and petrol fuels.

But, following expansion globally, and the progress of the LCCP, Sasol’s culture has been dented and the JSE and NYSE-listed company faces new challenges.

LCCP has gone way over budget and beyond deadlines, the company has been forced to look into its carbon emissions, and employees have voiced concern over management decisions regarding share ownership.

Of course, because of the size of investment, LCCP has been the immediate focus at Sasol. The project will now cost Sasol almost R13 billion, an increase of more than 50% on initial

www.emea-energy.net / 55

INDUSTRY FOCUS: ENERGY

// BY REDUCING EMISSIONS THROUGH ALTERNATIVE FEEDSTOCKS AND TECHNOLOGIES SUCH AS RENEWABLE ENERGY, WE BELIEVE OUR PRODUCTS, PRODUCED IN AN INCREASINGLY SUSTAINABLE MANNER, WILL SERVE AN IMPORTANT MARKET NEED, WHILE ADDRESSING CLIMATE REQUIREMENTS // projections. Shares hit a 20-year low when the company announced this news. In 2016, David Constable – thenCEO – said that a rise in cost to R11 billion was the ‘worst case scenario’.

Sasol has highlighted weather delays, correction for duplication of investment allowances, higher contract expenses, unanticipated work and defective materials as reasons for expense hikes.

Market commentators have looked on in shock and quickly pointed the finger at senior management - ‘it’s illustrative of lacklustre controls and oversight throughout the four to five years LCCP has been in design and construction. Sasol needs to address its leadership and culture’ said one analyst.

Since 2016, Bongani Nqwababa and Stephen Cornell headed up Sasol as joint CEOs. While the company has always backed strategy of a joint role, many have cited differing strategy and implementation methods as strains on the business with one journalist even labelling the

56 / www.emea-energy.net

organisation as the ‘Sasol Hydra’, after the two-headed mythical creature.

But, in October, Nqwababa and Cornell stepped down under pressure from shareholders amid the rising cost crisis at LCCP following a lengthy internal review commissioned by the Board. The company’s Executive VP of its global chemical business, Fleetwood Grobler – a 35-year Sasol veteran – will take the reins as CEO. Upon the resignation of the joint CEOs, the Sasol board released a fairly damming statement: “It is a matter of profound regret for the Board that shortcomings in the execution of the LCCP have negatively impacted our overall reputation, led to a serious erosion of confidence in the leadership of the company and weakened the company financially.”

Sasol is the largest contributor to tax revenue in South Africa and the world’s largest producer of fuel from coal. Grobler faces a big task to restore confidence in the business and steady the ship after the LCCP cost crisis.

During his first speech at the 2019 annual financial results presentation, Grobler set out his position on taking the business forward.

“I am well aware of the challenges that we have faced and also the challenges that lie ahead.

“Recent events have created a significant amount of uncertainty at Sasol, through which the team has been remarkably resilient.

“We need to be realistic that although today we address some key areas of uncertainty, we will have challenges ahead. Chief among these is the successful completion of the LCCP. “Many of our stakeholders are not interested in promises, they want to see delivery and I’m very much on that page,” he said.

Even with the hurdles in America, Sasol has managed to continue bringing positive results.

October saw the release of what Grobler termed ‘resilient results in a challenging environment’.

STRONG PERFORMANCE Overall, annual profit was up 5%.

Headline earnings per share (HEPS) were up 12% to R30,72. Core headline earnings per share (CHEPS) were up 5% to R38,13. Cash generated by operating activities was up 20%. At Secunda, Synfuels Operations achieved an annualised run rate of 7,8 mt post the full shutdown. Natref achieved a production run rate of 637m³/h, the highest in last eight years. The HighDensity Polyethylene plant produced at the upper end of design capacity, and ORYX GTL achieved utilisation of 81% due to unplanned maintenance shutdowns. Mining productivity was up by 3%. Liquid fuel sales volumes up 2%, resulting from a strong Natref performance. On the sales side, the business continued with satisfactory results. Base Chemicals sales volumes up 4%, offset by softer commodity chemical prices. Performance Chemicals sales volumes down 3% impacted by 1st half 2019 external supply constraints and 2nd half 2019 softer macroenvironment in Europe and Asia.

“For the financial year our foundation business delivered resilient results despite challenging conditions. The big capital spend on the LCCP is behind us and the finish

// LCCP HAS HIGHLIGHTED THE IMPORTANCE OF CREATING THE RIGHT CULTURE AND CONTROL ENVIRONMENT WHERE OPEN AND TRANSPARENT DIALOGUE IS ENCOURAGED //

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// WE NEED TO BE REALISTIC THAT ALTHOUGH TODAY WE ADDRESS SOME KEY AREAS OF UNCERTAINTY, WE WILL HAVE CHALLENGES AHEAD // line is in sight,” said Grobler.

He went on to highlight progress in Louisiana, which he said was now 99% complete, with construction 96% complete and capital expenditure at $12.2 billion with projections placing the final cost between $12.6 and $12.9 billion.

“The Ethane Cracker, which is the heart of the project, reached beneficial operation in August this year, a landmark milestone for us. With

58 / www.emea-energy.net

the Cracker, LLDPE and EO/EG units operational, more than 60% of LCCP’s output is now online,” Grobler explained.

“By the end of this calendar year, with the LDPE plant online, the LCCP will be around 90% operational, based on nameplate capacity or gross production; or around 85% operational, based on steady state external sales. The Ziegler unit – the largest of the remaining units – has now reached more than 80% construction completion. As mentioned earlier, we are focused on a balanced cost and schedule execution of these last units and hence, forecast beneficial operation of the ETO unit in Q3 FY20, and the Ziegler and Guerbet units in Q4 FY20.

“Notwithstanding the significant and disappointing challenges related to LCCP, we believe that this world-scale facility significantly strengthens our position in the global chemicals market,” he said.

Going forward, Sasol will look to complete in America without further

delay or cost increase. The company will also look to restore confidence in its brand, and will look to reposition itself as an energy company with a sustainable model. For this reason, Grobler is looking to create a new culture within the business while reducing carbon emissions.

CULTURE SHIFT “LCCP has highlighted the importance of creating the right culture and control environment where open and transparent dialogue is encouraged.

We as management need to change our conduct and set the tone for the rest of the organisation. This is completely in line with our ongoing culture transformation programme, and a critical aspect of new and enhanced controls being introduced throughout the group.

“Nearly 85% of all our greenhouse gas emissions emanate from our South African operations, necessitating a particular focus here,” he said.

SASOL

The company is looking for a 10% reduction by 2030, bringing greenhouse gas emissions down from 56 million tonnes of CO2 to 50 million.

As the second largest emitter of greenhouse gases in South Africa, Sasol’s operations, particularly the Secunda chemical complex, pump out the same emissions as four power stations. Various ideas are being discussed for reducing the company’s footprint, and management will be incentivised for achieving various goals.

Hermann Wenhold has been installed as Chief Sustainability and Risk Officer and he is certain that the business must change. “As we contribute and respond to the global transition to a lower-carbon future, business as usual is no longer possible,” he said.

“Our business, particularly in South Africa, will be impacted in multiple ways. These include potential changing demand for our products, new policy requirements, higher costs from the transition to a lower-carbon future and physical climate change impacts on our operations. We are adapting as the transition takes place. Therefore, we have adopted a structured approach and are already executing on our emission-reduction ambitions. Our first goal is to reduce by 2030 the absolute GHG emissions from our South African operations by at least 10%, off our 2017 baseline.”

Since 2005, Sasol has improved its energy efficiency by 21.7% in South

// I BELIEVE WHAT SASOL NEEDS TO MOVE FORWARD: IS REALISM, FOCUS AND DELIVERY AND I AM COMMITTED TO MAKING SURE THIS HAPPENS //

Africa and 19.5% globally.

“By reducing emissions through alternative feedstocks and technologies such as renewable energy, we believe our products, produced in an increasingly sustainable manner, will serve an important market need, while addressing climate requirements,” adds Wenhold.

Sasol will no longer embark on any new coal- and gas-to-liquid projects, and will not add new refining capacity.

“We are working towards finding impactful, economic and socially acceptable solutions to reducing our emissions, especially in South Africa, where our challenge is elevated, given our coal-based operations,” reminds Grobler.

With LCCP nearing an end, ensuring the thousands of employees around the world get on board with the company’s new strategy, and a resilient culture is fostered, Fleetwood Grobler must get his tactics right.

Forbes Africa reported last year that ‘without a positive corporate

culture, many employees will struggle to find the real value in their work, and this leads to a variety of negative consequences for your bottom line’.

Research from Deloitte backs this up, finding that 94% of executives and 88% of employees believe a distinct corporate culture is important to a business’ success.

Grobler is clear what he thinks is needed to continue driving this South Africa success story forward.

“I believe what Sasol needs to move forward: is realism, focus and delivery and I am committed to making sure this happens,” he said.

With LCCP almost over the line, and with a new leader providing a single route forward, the future looks bright for Sasol.

WWW.SASOL.COM

www.emea-energy.net / 59

TRANSNET

Rail & Port Investments to Drive

SA Economic Growth PRODUCTION: Manelesi Dumasi

Transnet has signed up to a number of new partnerships and initiatives that will see the State Owned rail and port utility assist customers moving product around South Africa and exporting to global markets. In times where State Owned Entities are under more scrutiny than ever before, Transnet is displaying all the characteristics of a business ready to participate in the modern commercial environment.

//

Of all South Africa’s State Owned Enterprises (SOE), Transnet is arguably the country’s most important. Employing more than 55,000 people, the rail and port infrastructure utility is a major driver of economic performance and is the one of the most important elements behind President Ramaphosa’s big investment drive – if South Africa wants to attract FDI, it must have functional ports and rails in order to import, export, and move product around this large nation.

But, despite its clear importance to South Africa, and southern Africa, Transnet has been plagued by negativity after years of mismanagement and corruption have left the titanic business with a

60 / www.emea-energy.net

tarnished reputation and a lacking level of trust from the South African public.

This unfortunate situation was compounded in November when Auditor General, Kimi Makwetu confirmed that SOEs were indeed under extreme financial pressure.

“There were weaknesses in the performance reporting processes and an increase in non-compliance at the 14 SOEs and their significant subsidiaries audited by the Auditor General South Africa (AGSA). These entities also disclosed R1.4 billion in irregular expenditure,” said Makwetu.

For Transnet, this kind of news is not welcome as the company works hard to restore its standing as a trusted, reliable and ethical partner of South Africa.

Acting CEO, Mohammed Mahomedy

– viewed by many as a cleaner of corruption – has stated that the company is now regaining credibility.

“Transnet is a significant entity in the lives of South Africans and the local business community. Notwithstanding the adverse findings and reports at the Zondo Commission and in the media, the Board and management are confident that the vast majority of the organisation’s strong Transnet community are good, committed and passionate people who have given of themselves for the benefit of the organisation and all that it stands for,” he said when discussing the company’s financial results.

Several recent announcements have helped to affirm that the business continues to do good work, and remains extremely important to the country.

© Transnet

INDUSTRY FOCUS: INFRASTRUCTURE

REELING IN GOOD RESULTS In September, Transnet released its results for the year ending 31 March 2019. Revenue increased by 1.6% to R74.1 billion; EBITDA increased by 3.8% to R33.8 billion; profit for the year increased by 24.7% to R6 billion; and cash generated from operations increased by 0.7% to R35.2 billion. The company also recorded a disabling injury frequency rate (DIFR) of 0.71 – below 0.75 for the eighth consecutive year, and well below the global benchmark of 1.0.

These encouraging results demonstrate that, even during tough times, Transnet’s important work is continuing to generate positivity.

With ongoing capital investment programmes underway, it is likely that Transnet’s influence will also continue to prove vital across the various value chains in which it plays.

“Transnet is a significant entity in the lives of all South Africans;

// THE BOARD HAS MADE SIGNIFICANT PROGRESS IN ENSURING THE ORGANISATION IS CLEANSED OF THE MALFEASANCE ASSOCIATED WITH THE ‘STATE CAPTURE’ ERA AND HAS BEEN ABLE TO DRAW ON A DEPTH OF TALENT TO TAKE ON THE ROLES VACATED BY SENIOR EXECUTIVES WHOSE SERVICES WERE TERMINATED // 62 / www.emea-energy.net

and as one of the largest logistics infrastructure SOEs on the African continent, it is in many ways the very heart and lungs of our economy.

This 55,000-strong employee community is also a microcosm of the macrocosm that is the South African developmental state. As such, it is both our duty and privilege to support National Government’s developmental mandate through large-scale industrialisation, active and competitive supplier development, job creation and employment equity – both within Transnet’s operations, and through the creation of direct and indirect industrialisation opportunities in the wider economy,” said Mahomedy.

This positivity continued in December when decent half year results were released, highlighting a revenue increase of 2.9% to R38.7 billion; an EBITDA increase of 5.1% to R17.5 billion; cash generation from operations increasing by 5.3% to R16.2 billion; and profit for the year increasing by 3.5% to R2.9 billion.

“Operational performance during the period under review was mixed with areas where performance exceeded expectations and areas where, due to various challenges in the port environment and general freight rail sector, performance was below expectations,” said Mahomedy.

MECA 2 Also in September, Transnet announced details of an exciting new partnership with Kalagadi Manganese.

This black female-owned business has partnered with Transnet through a R3 billion, three million tonne per year deal which will see beneficiated sinter manganese moved across the country’s rail infrastructure to ports for export to global markets.

The Manganese Export Capacity Allocation Agreement (MECA 2) is a five-year deal which will also see creation of new jobs and large contributions to the national economy.

“This contract, which as part of

// TRANSNET IS A SIGNIFICANT ENTITY IN THE LIVES OF ALL SOUTH AFRICANS; AND AS ONE OF THE LARGEST LOGISTICS INFRASTRUCTURE SOES ON THE AFRICAN CONTINENT, IT IS IN MANY WAYS THE VERY HEART AND LUNGS OF OUR ECONOMY // the MECA2 project, will offer us an opportunity to move three million tonnes product from the Kalagadi Mine and Sinter Plant in the Northern Cape through to Eastern Cape Province Ports,” said Founder and Chairperson, Daphne Mashile-Nkosi – who has been working on a partnership with Transnet for more than a decade.

“This partnership supports a job creation of over 1250 direct opportunities through various parts of our value and these will make a contribution of R6.2 billion annually to the country’s GDP.” MECA 2 kicked off in 2015 and has since helped to realise an increase of manganese export volumes from five million to 15.1 million tons each year.

“As an entity, we want to be an active contributor to the country’s mission of retaining the position of being the leading exporter of highgrade beneficiated manganese. And this contract gives us the opportunity to make that dream a reality,” said Mashile-Nkosi.

Transnet Chief Customer Officer Mike Fanucchi added: “This is an indication that Transnet is serious about the integration of its operations to suit customer needs. When we commenced

TRANSNET

with the MECA process, and the integration of our service offering, we only had two manganese companies playing in the export manganese markets. We are excited to see this number increasing.”

Today, Transnet has organised MECA 2 contracts with 10 local manganese producers and has set aside 15% of its overall manganese export lines for new entrants.

WORLD’S LONGEST In October, Transnet Freight Rail (TFR) celebrated as it officially launched its new 375-wagon manganese train – a production train with the largest number of wagons in the world. TFR had held the previous record with its 342 wagon iron ore train.

The train, which extends over four km, travels 861 km from Sishen to Saldanha and can now carry 23,625 tons of manganese per train.

Designed to assist customers in the Hotazel region, the new train brings improved efficiencies.

TFR General Manager for the Iron Ore and Manganese Business Unit, Russell Baatjies said: “The project team was challenged to explore the use of technology through Industry 4.0 solutions, to achieve the same objective at minimum cost. Applying distributed power technology to increase the train length to 375 wagons will reduce capital requirements by over 90% of the initial estimate.”

TFR’s Acting Chief Executive, Lloyd Tobias said: “This is in line with TFR’s business objective of applying the heavy haul operating, maintenance, design, construction and best practice principles on General Freight operations, and the Transnet Strategy of migrating traffic from road to rail.”

TFR General Manager, Brian Monakali who is also the former Chairman of International Heavy Haul Association said: “This is another breakthrough for the Heavy

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INDUSTRY FOCUS: INFRASTRUCTURE

Haul Railway Industry. Rio Tinto, Australia, recently started with the implementation of Driverless trains in their Iron Ore railway system. Transnet has now successfully operationalised the 375-wagon train. The collaboration on technical research and sharing of best practice by Heavy Haul operations worldwide will surely keep pushing the operations, safety and rail capacity envelop to new levels through application of breakthrough technology.”

PEOPLE INVESTMENT The type of innovation and engineering excellence that shines through at Transnet comes as a result of the company’s ongoing focus on people development and its ability to bring people through a system.

By investing in skills development, Transnet is obtaining talent from South Africa and exposing it to the world.

In November, TFR welcomed more than 100 new engineering and technician graduates into the rail network operations side of the business. All have completed the Engineering Development Programme which is part of a wider Transnet

© Transnet

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scheme which has seen the group spend R700 million on training programmes in 2018/19 alone.

The 73 technicians and 35 engineers will undertake a wide range of important work for Transnet and will pave the way for future recruits coming out of South Africa’s universities.

Brian Monakali said: “EDP forms part of Transnet’s overall training programme. The development of Engineers and Technicians in rail engineering creates a pipeline and succession pool of qualified and competent Technicians and Engineers who are ready to advance the business needs and be promoted into critical management and specialist functions.”

Lloyd Tobias agreed saying: “There has been some notable progress over the years in terms of the intake of Engineers and Technicians at Transnet. As a SOC, we see the youth as the future leaders of our country and as informed by our mandate to commit to the skills development and training of our youth, the Engineering Development Programme seeks to contribute to the Government’s plans to advance youth development.”

TFR Executive Manager:

// AS AN ENTITY, WE WANT TO BE AN ACTIVE CONTRIBUTOR TO THE COUNTRY’S MISSION OF RETAINING THE POSITION OF BEING THE LEADING EXPORTER OF HIGHGRADE BENEFICIATED MANGANESE // Human Capital (Service Delivery), Zinhle Sithole spoke about the company’s successful collaboration with educational institutions. “The Engineering Bursars are recruited from a number of tertiary institutions, the collaboration also gives Transnet a chance to tap into the minds of academics when comes to Engineering, Research and Development projects and other career developments,” she said.

TRANSNET

GERMAN PARTNERS A positive deal was concluded in November when Transnet arranged a loan agreement, as part of its diversified funding plan, with Frankfurtheadquartered KfW Ipex-Bank. The seven year, R1.6 billion bilateral loan will support the country’s freight-handling infrastructure development.

“The signing of this loan agreement demonstrates continued investor confidence in the business and their comfort with the improved governance environment, that has been driven by the new Transnet board of directors,” said Mohammed Mahomedy.

Transnet’s Acting Chief Financial Officer, Mark Gregg-Macdonald added: “This is Transnet’s second loan agreement with KfW Ipex-Bank which comes with a longer tenor and larger commitment than the previous facility concluded with them five years ago.”

LEDJADJA COAL Transnet has made its name in the coal fields of South Africa. Railing coal to the ports for export has been a major driver of business for the company over the years. In November – a productive month for Transnet – the company announced details of a new partnership that would see its work in the coal sector extended.

The R10 billion contract with Ledjadja Coal – a division of Resource Generation (ResGen) – will see Transnet haul 3.6 million tonnes per annum from the Boikarabelo Coal Mine in Limpopo’s Waterberg coal field to Richards Bay for export. Currently in development, the mine is aiming for first coal to be loaded at the port in June 2022.

The Waterberg is an extremely important region for Transnet, and for South Africa’s coal export industry, and the company continues to invest heavily in infrastructure development to maximise potential from the area.

A 1.8 km passing loop has been completed at Matlabas which allows 100-wagon trains to cross without

© Transnet

disrupting other traffic. A 2.8 km loop is underway at Thabazimbi, and expansion with a new five km line is underway to connect Bleskop and Norite. When all is complete, the Waterberg project will unlock capacity allowing for Ledjadja and other coal operations to send their product for export with ease.

Mike Fanucchi said: “This contract will enable Transnet to fulfil its mandate of lowering the cost of doing business in South Africa. This contract will stimulate an appetite of coal miners in and across the Botswana border.”

ResGen Chief Executive Officer (Interim), Leapeetswe “Papi” Molotsane said: “The signing of the deal is an important effort in opening up the Waterberg region, in line with South Africa’s strategic imperatives embedded in SIP 1. Boikarabelo is a genuine public-private partnership with key South African stakeholders such as Transnet. Securing rail capacity with Transnet is such a huge milestone for the company as it results in multiple economic benefit for Lephalale and surrounding areas.”

With this significant new contract, the success of the new graduates, and the progress being made in

the manganese space, it’s clear that Transnet’s decent results are not a one off and the business case behind this behemoth organisation remains robust. With new management purging the system of corruption, the future looks bright for Transnet as it continues to roll on as one of South Africa’s SOCs that is much needed.

“The Board has made significant progress in ensuring the organisation is cleansed of the malfeasance associated with the ‘state capture’ era and has been able to draw on a depth of talent to take on the roles vacated by senior executives whose services were terminated,” said Mahomedy.

As the reputation of all SOCs are nurtured back to health, Transnet is fortunate that its work is vital and ‘inextricably involved in all aspects of life in South Africa’ and its reach in terms of numbers of people employed make it a business that holds significant clout. With all of the exciting projects underway right now, and with more to come in the future, Transnet’s power and influence will continue to grow.

WWW.TRANSNET.NET

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Angola - Fspo Olombendo

ENI

World Leaders

in Sustainable Energy Provision PRODUCTION: Benjamin Southwold

Operating in 67 countries worldwide and employing more than 30,000 people, Eni is an Italian company with an international presence. One of the global oil and gas super-players, Eni’s foundations are built upon oil and gas exploration, production, refining and selling operations, electricity and chemistry. Sustainability is at the core of everything, both present and future, while a central focus on Africa is bringing exciting developments, Energy Focus discovers. www.emea-energy.net / 67

INDUSTRY FOCUS: ENERGY

//

“Our roots are in Italy, but from the very beginning we have looked beyond our national borders.” This is Eni in a nutshell, and this wanderlust has seen it reach a position where it carries out oil and gas exploration, development and extraction in 43 countries, trades in oil, gas, liquid natural gas (LNG) and electricity in 28 countries and sells high-quality fuels and lubricants in 33 countries.

Exploration and production are major drivers for Eni, where its global footprint sees it active across Italy, Algeria and Egypt, through the United Kingdom, United States, Mexico and

Venezuela, to name but a few. The gas and power arm of Eni meanwhile is responsible for the development, both in Italy and abroad, of commercial retail, mid gas and power, and the generation of electricity.

Enipower generates electricity and thermal energy through power plants fuelled by natural gas, the fossil fuel with the lowest environmental impact, and its generation pool boasts one of the lowest emission factors in the Italian thermoelectric power sector.

As an international gas and LNG operator, Eni occupies leading positions in both the European and emerging markets. Its work in

// IT IS PRECISELY IN SUSTAINABILITY THAT ENI IS CURRENTLY AT THE TOP OF THE WORLD RANKINGS, AS IS CONFIRMED BY THE NUMEROUS AWARDS WON AT INTERNATIONAL LEVEL //

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this sector involves the buying and selling of liquefied natural gas, and LNG boasts a global portfolio based on long-term purchasing contracts with reliable suppliers, a network of relationships with end clients and traders all over the world.

MAKING CHANGE The Eni story stretches way back to its 1953 founding and establishment by law from an existing company, Agip, created in 1926 with the mandate to explore for oilfields and acquire and commercialise oil and derivatives.

“An absorbing journey through time,” is how Eni refers to its more than 65-year heritage, and it truly has been a voyage filled with twists and turns alongside moments that have shaped Italy and the world. The need to bring energy to Italy soon pushed Eni to branch out as far afield as Egypt, later joined by Russia, China and numerous others for the supply of crude oil.

ENI

The past two decades have been primarily characterised by further internationalisation and, crucially, sustainability. The development was launched of the most important oil field discovered in the last thirty years, the Kazakh Kashagan Field, while in 2003 work began on the Blue Stream

// OUR AIM IS TO CHANGE THE ENERGY MIX OF OUR ACTIVITIES BY REPLACING ENERGY FROM FOSSIL FUELS WITH RENEWABLE SOLUTIONS THAT PROVIDE GREEN ENERGY //

gas pipeline, a joint venture between Eni and Gazprom to transport gas from southern Russia to Ankara.

“Maximum attention has been given to issues of quality, innovation and cooperation, in a word to ‘sustainability’,” Eni elucidates about its current and future guiding principles.

“It is precisely in sustainability that Eni is currently at the top of the world rankings, as is confirmed by the numerous awards won at international level, starting from the inclusion in the Dow Jones Sustainability World Index.”

Right from the outset Eni has looked to bring about positive change in the industry, as Eni’s founder Enrico Mattei, pointed out at its beginning.

“We launched a new formula,” he stated at the time. “We pay the fees the others pay and in addition give the producing country a 50% stake in the production and development of its resources.”

Today, reducing environmental impact is a key long-term commitment

for Eni, building toward a low-carbon future. “At Eni, we recognise the need to act to fight climate change,” the company stresses. “We want to lead the energy transition by supporting the goals of the Paris Agreement.

“Reducing climate-altering gas emissions, developing renewable sources and green business, and reaching a net zero carbon footprint for direct upstream emissions by 2030 are just a few of our long-term objectives.

“Eni is determined to be a force for good in contributing to the achievement of the UN’s Sustainable Development Goals and bringing about a just transition,” said Claudio Descalzi, Eni’s Chief Executive Officer, at the September publication of a new corporate mission statement. “Our global presence makes us acutely aware of the challenges the world faces today: our new mission sets out the values and principles which will drive us in helping tackle those challenges.”

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INDUSTRY FOCUS: ENERGY

EVOLVERE ACQUISITION Eni gas e luce is the company, 100% controlled by Eni SpA, dedicated to the commercialisation of gas, electricity and energy solutions for families, apartment buildings and businesses. Active in four European countries with 1,600 employees and eight million clients in Italy, it is also one of the main operators in the free market of energy supply for domestic consumption.

In November came the announcement that Eni gas e luce had acquired 70% of Evolvere S.p.A., a leading Italian company in the field of distributed generation through an innovative business model that combines green and the sharing economy. The transaction is a strategic one for Eni gas e luce: it becomes the leader in the area of solar distributed generation in Italy, and it works perfectly in step with Eni’s mission to build value through the energy transition.

Evolvere is a leader in the distributed generation sector in Italy, with around 11,000 photovoltaic plants accounting for some 58MW of total installed power. The company’s

offer includes the sale, installation and maintenance of solar photovoltaic plants and batteries for residential customers and businesses up to 20KW. “In an energy market where final customers take on a more active role – being both producers and consumers – Evolvere’s acquisition lets Eni gas and luce become a leader in the market of distributed generation from renewable sources in Italy,” Eni gas e luce’s Chief Executive Officer Alberto Chiarini said of the deal.

“Following the acquisition, Eni gas e luce is better positioned to create further value, making new business opportunities available to Evolvere, by involving its business partners and providing the company with the resources needed to seize the opportunities of a fast growing market.”

In Italy, the market of small photovoltaic plants is expected to grow exponentially in the next four years, with a yearly average of newly installed power set to hit 290 MW. This will draw from a potential pool of around nine million single-family or two-family houses, on top of the around 800,000 energy producers and consumers (prosumers) already active.

PHOTOVOLTAIC FUTURE The Bhit Photovoltaic Plant is Eni’s first solar project in Pakistan, achieved through its subsidiary Eni New Energy Pakistan. Built in close proximity to the Bhit Gas Plant and inaugurated last month, it aims to support upstream operations by providing green energy in an off-grid configuration, with a 10MW peak capacity expected to produce approximately 20GWh each year.

“The output energy will be used on site, reducing gas consumption and saving around 144,000 tonnes of CO2 equivalent emissions during plant life,” Eni explained. “The photovoltaic plant works in full synergy with the existing power generation system of Bhit gas treatment plant, optimising operational

// I AM VERY CONFIDENT IN ENI’S POSITION AS I LOOK TO THE NEAR FUTURE AS WELL AS TO THE MEDIUM AND LONGTERM TRANSITION //

Ghana - Sanzule's Onshore Receiving Facilities

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ENI

costs with the shut down one of the existing gas turbines.”

The Pakistan photovoltaic milestone bolstered the existing commitment on the part of Eni and ETAP to develop renewable energy projects in Tunisia. The 10MW photovoltaic plant at Tataouine further demonstrates Eni’s commitment to promoting sustainable growth in the country, and will provide the national grid with more than 20 GWh/year of electricity, saving a total of around 260,000 tons of CO2 over its 25 year lifetime.

Eni will also complete its construction of the Adam photovoltaic field in Tataouine this year, which will have a maximum installed capacity of 5 MW. “The project aims to establish a cutting-edge hybrid electricity production system with battery storage devices, in order to enable efficient integration with the existing turbines,” Eni said, adding that both projects would support upstream operations by providing off-grid green energy.

Eni has also taken the first steps towards changing the energy mix in Algeria, with a 10MW solar energy plant set to provide green energy to Algeria’s oil production centre and begin to decarbonise the country’s energy system. “The Bir Rebaa North (BRN) complex proves that renewable energy projects can provide efficient support to oil and gas operations, while at the same time helping to reduce greenhouse gas emissions,” Eni outlined.

“Initiatives such as this are an integral part of our strategy in the countries where we work; our aim is to change the energy mix of our activities by replacing energy from fossil fuels with renewable solutions that provide green energy.”

// WE ARE GROWING OUR BUSINESS IN NUMEROUS COUNTRIES ON THE AFRICAN CONTINENT //

AFRICA CONNECTION Africa has long held huge significance for Eni: it was the scene of some of its first key steps as it ventured into the Egyptian desert in 1954 and has provided such crucial moments as the discovery of Coral in Mozambique, Zohr, the largest gas field in the Mediterranean, and the Salissa Mwana project in Congo.

Today, Africa makes up more than half of Eni’s total crude oil and natural gas production, confirming Eni as the leading international producer in the continent, and it remains a top priority. “We are growing our business in numerous countries on the African continent,” Eni says, “always respecting local culture and human rights.

“In particular, we have recently signed an agreement with the United Nations that aims to meet the Sustainable Development Goals (SDGs) for Africa and universal access to energy by 2030.” The start of an exciting new partnership, Eni has signed an agreement with the United Nations Development Programme (UNDP) to promote renewables energies, energy efficiency and clean cooking initiatives, something entirely new in the energy sector.

Recent months have seen a slew of developments as it makes moves to consolidate and expand its position on the continent. Ghana’s Senior Minister Yaw Osafo-Maafo Claudio Descalzi last month opened the Okuafo Pa Agricultural Training Center in Dormaa East, Bono region.

The Okuafo Pa campus extends over an area of 40 hectares and includes experimental laboratories and farming areas. It will provide theoretical and practical vocational training to 800 students per year in the agricultural, agri-food and zootechnical fields, courses developed in collaboration with local universities.

“Professional training and skill acquisition is a precondition for social and economic development,” underlined Claudio Descalzi. “Eni

intends to play an active role in defining virtuous paths for sustainable growth in the countries in which it operates, and this project is a concrete example of what we can do if we pool our resources and those of our partners.”

Back where it all began in Egypt, new resources were discovered this year in the Abu Rudeis Sidri development lease, in the Gulf of Suez. This new and important result continues the positive track record of Eni’s ‘near field’ exploration of its historical concessions in Egypt, showing the value of using new concepts and technology in reevaluating areas where exploration was considered to have reached a high level of maturity.

The entire Sidri South discovery, originally estimated to contain about 200 million barrels of oil in place, will be reassessed following the results.

Also in October, Eni published its results for the third quarter and first nine months of 2019. “Eni has delivered robust results in the quarter, while also finalising the acquisition of Exxon’s assets in Norway and a 20% stake in the Ruwais refinery in the UAE, providing a further boost to growth and stability,” Claudio Descalzi remarked.

“It is important to highlight the continued progress from our complementary businesses of the future, from bio-refineries to renewables and the first waste to fuel pilot plants, which draw on in-house research,” he summarised. “I am very confident in Eni’s position as I look to the near future as well as to the medium and long-term transition.”

WWW.ENI.COM

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EXHIBITION CALENDAR

KEY UPCOMING EVENTS ACROSS THE INDUSTRY Our regular update to help you keep track of important events and exhibitions taking place across the energy industry.

ABU DHABI SUSTAINABILITY WEEK JAN 11 - 18 | ABU DHABI Abu Dhabi Sustainability Week is an event which aims at promoting sustainable development of the country and a proper utilisation of natural resources. The event includes proper utilisation of resources and limiting the use of the carbon economy. The event aims at setting various targets based on renewable energy resources and protecting earth from global warming and pollution. Researches and analyst come from all across the world and discuss their ideas and technologies that would help achieve a sustainable pollution free environment. The professionals discuss their latest innovative renewable energy preservation techniques and gadgets that help lowering down the overall carbon utilisation.

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INTERSOLUTION EXPO JAN 15 - 16 | GHENT Intersolution Expo provides an overview of the manufacturers of solar energy systems.

It is an umbrella platform within which the various applications of solar energy are integrated and where attendees can examine and compare technologies and principles close-up, and a complete and up-to-date market overview.

ANNUAL SOUTHERN AFRICAN COAL CONFERENCE JAN 29 - 31 | CAPE TOWN The Southern African Coal Conference, acknowledged as the foremost professional and business development event for the African and Asia Pacific coal export markets, this year’s event features a full program of informed discussion and debate centering around the industry’s most impactful topics, coupled with several opportunities for interaction and relationship building with your current and future customers.

INTERNATIONAL CONFERENCE ON POWER, ENERGY AND ELECTRICAL ENGINEERING NOVOTEL LONDON BLACKFRIARS HOTEL, LONDON, UK DEC 19 – 21 GLOBAL SIGMA SUMMIT INDIAN AGRICULTURAL STATISTICS RESEARCH INSTITUTE, NEW DELHI, INDIA JAN 09 – 11 INTERNATIONAL PETROLEUM TECHNOLOGY CONFERENCE DHAHRAN EXPO, DAMMAM, SAUDI ARABIA JAN 13 – 15 DEEP OFFSHORE WEST AFRICA CONGRESS ACCRA, GHANA JAN 16 – 17 THE NATIONAL SUSTAINABILITY SUMMIT CITYWEST HOTEL, DUBLIN, IRELAND JAN 30 – 31 ANNUAL POWER TECH AFRICA VILLA ROSA KEMPINSKI, NAIROBI, KENYA JAN 30 – 31

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